Industry Insights

28 June, 2012

The recovery from the 2008 financial crisis has led to increased optimism across multiple sectors, and the subsequent growth from recession levels has led to the emergence of a number of positive trends for C-level executives.

ExecuNet, which surveyed 5,733 American executives for its 2012 Executive Job Market Intelligence Report, outlined several trends that suggest a bright future for occupants of the executive suite. 25% of companies expect to add new executive positions in the coming year, while only 2% are continuing the management cutbacks begun in 2008.

Optimism is highest in the healthcare, technology and life science sectors. Executive hiring is also expected to increase in the manufacturing, business services and consumer products sectors in 2012. Regionally, growth is expected to be greatest in the Northeastern and Southwestern U.S.

Compensation for workers in global executive jobs is also expected to rise in the coming year, as 55% of those surveyed noted that companies are increasing salaries and bonuses for executives. This indicates a trend toward executive retention, which 67% of participants identified as an area in which their companies are focusing.

The positive sentiment expressed by participants in the ExecuNet survey could be due to another emerging trend in the market, which has stockholders exercising greater control than shareholders in matters of executive compensation.

Reuters reported that Goldman Sachs Group Inc. stockholders approved the firm's compensation plan for top executives after three proposals were rejected by shareholders. Efforts to require top executives to keep 75% of the stock they receive from Goldman Sachs for three years after their employment ends were defeated during deliberations.