Learn more about the Executive VP salary. What are the factors that affect their salary? In this article, we will discuss the basic salary of the Executive Vice President.
What is an Executive VP Salary?
The basic Executive VP salary is a percentage of a company’s annual revenue. When a company brings in a good amount of revenue, the company’s executives will be earning a significant amount. The basic salary of an executive varies from industry to industry and from country to country.
The Executive VP’s salary usually depends on the role of an Executive VP. If an executive is serving as Chief Operating Officer (COO) then the executive’s salary will be higher than the salary of an executive who is serving as Chief Financial Officer (CFO).
The average salary of an Executive VP is often more than $250,000. Companies usually provide additional perks to their executives. These perks include company cars, financial planning, stock options, and gym memberships. Some companies also provide executive education programs where the executives can get additional training and education.
Executive VP Salary Factors
Multiple factors contribute to the basic salary of an executive.
1 – The first factor is the country.
Numerous factors determine what an executive will earn in a particular country. The cost of living and the purchasing power of a country’s currency play a significant role in determining that salary.
2 – The second factor is the industry.
Some industries pay better than others. For example, the basic salary of an executive working in the oil and gas industry is higher than the basic salary of an executive working in the food and beverage industry.
3 – The third factor is the company’s size.
The company’s size determines how much revenue it brings in. A company with a huge revenue will offer better salaries to its executives. For example, if you are an executive working for a company that brings in $1 billion in annual revenue you will earn a higher basic salary than an executive working for a company that brings in $100 million in annual revenue.
Executive VP Salary in Different Countries
The average salary of an executive in a particular country will greatly depend on the country’s economic conditions and the economic conditions of the industry that the company is in. For example, when a country has a small population and a small population, the average salary of an executive will be smaller than a country with a bigger population and a bigger population.
In addition, when a country has a good economic environment, the average salary of an executive in that country will also be higher than an economy that has poor economic conditions.
In general, countries in Western Europe and the United States have high salaries. Countries in Asia and Latin America have average salaries. Countries in Africa have the lowest executive salaries.
Executive VP Salary in Different Industries
Since industries are different, industries will also affect the salary of an executive. The average salary of an executive working in the healthcare industry is higher than the average salary of an executive working in the construction industry. The basic salaries of executives are usually higher in industries that are growing rapidly.
The basic salaries of executives in different industries are usually compared using the ratio of the salaries to that industry’s revenue. If an executive’s salary is equal to two percent of that industry’s revenue, then this ratio is known as the pay ratio.