How Much is the VP Executive Compensation?

vp executive compensation

Executive VP compensation differs from company to company. It is dependent on the size of the company and the executive’s responsibilities and duties. 

So, let’s have more insights about the topic. 

What is a VP Executive Compensation?

An executive vice president (VP) is an upper-level management position in a company. The vice president title is typically reserved for the second-highest-ranking executives in a company.

The average annual rate for an Executive VP is $184,048, according to PayScale. However, this figure varies widely by industry and company size.

What are the Benefits of Vice President (VP) Compensation?

An executive vice president (VP), like other executives, receives a base salary plus bonus and has access to benefits such as life insurance, health insurance, and retirement plans. The exact perks vary depending on the company and the employee’s position.

What are the Factors Affecting VP Executive Compensation?

As we know, the VP executive position is one of the upper-level management positions in a company. It has more responsibility and bigger tasks than a normal manager. So it is a fact that a VP executive salary is higher than a manager’s salary. The factors affecting the salary of a VP executive are mainly:

1. The Company Size

Generally, the bigger the company, the higher the executive vice president compensation. For example, the compensation of an executive vice president at an enterprise is higher than that of a small or medium company.

2. The Position

Generally, there are two kinds of vice presidents: senior vice presidents and vice presidents of operations. The senior vice president position has a higher salary than that of a vice president of operations. For example, the average annual salary of a senior vice president is $154,373, according to PayScale. The average annual salary of a vice president of operations is $96,064.

3. The Employee’s Experience

It is a fact that the experience of an executive VP can directly affect his/her salary and bonuses as well as the perks and benefits.

4. The Employee’s Responsibility

The amount of responsibility and tasks that an executive VP has can directly affect his/her compensation level.

5. The Employee’s Performance

A high-performing executive VP will likely receive a higher compensation package than an under-performing executive VP.

6. The National Compensation Trend

The national salary trend for the past few years is that executive VP compensation has been on the rise.

7. The Geographical Location

The same company may have different executive VP compensation depending on its location. For example, there is a big gap between the executive VP salary of companies in California and those in New York. For the same position, the compensation of an executive VP in San Francisco is higher than that of an executive VP in New York.

To Conclude

In the end, we can see that the executive VP’s salary is higher than that of a manager. The factors affecting the executive VP salary are mainly: the company size, position, employee’s experience, employee’s responsibilities and performance, and national salary trend. Besides, the geographical location also has a great impact on the executive VP compensation.

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