DIGITAL LEADERS REMUNERATION REPORT 2014
FOREWORD Welcome to The Up Group’s first annual Digital Leaders Remuneration Report. We’ve undertaken this project to provide insight into digital executives’ financial compensation across a range of functions, levels and company types. In order to create this report, we surveyed our network of digital leaders across Europe. We received almost 1,000 responses, the majority of which were from UK-based executives. Respondent demographics are set out on pages 2 and 3, and our methodology is described on page 24. It goes without saying that these findings are based purely on the information provided by survey respondents, and therefore caution should be exercised before drawing firm conclusions from the data. However, the overarching trends outlined in this report are borne out by our day-to-day experience of building outstanding digital teams for the world’s most innovative companies.
2-3 4-5 6-7 8-9 10-11 12-13 14-15 16-17 18-19 20-21 22 23 24
Survey demographics Trends Compensation vs. funding stage Founders CEO General Management Technology Product Marketing Commercial Finance / Operations HR / eCommerce Methodology / About us
We’re extremely grateful to everyone who took the time to complete the survey, and we’re delighted to be able to share our findings with you. If there’s anything in this report that you’d like to discuss, please do not hesitate to get in touch.
@TheUpGroup the-up-group enquiries@theupgroup.com +44 (0) 20 3005 5600 www.theupgroup.com Clare Johnston and Robert Swerling Co-CEOs, The Up Group
CEO
C-Level
DIGITAL LEADERS Remuneration REPORT 2014
Female
EVP / SVP / VP
General Management
Commercial
Technology
Male
Managing Director Senior Director Director
Strategy
Product
Operations
Head of ‌
Marketing
Insight / Intelligence Manager
Individual Contributor
HR
Finance
eCommerce
2
GENDER
LEVEL
FUNCTION
Advertising
SURVEY DEMOGRAPHICS We surveyed 954 respondents for our Digital Leaders Remuneration Report. This chart shows how they break down by gender, level, function, sector, company size and company ownership.
Commerce
1 to 50 Communications
Dating
Listed / Public
Education Energy
51 - 200
Entertainment FMCG Financial Services
201 - 500 PE-backed
Gambling Gaming
501 - 1000
Hardware Leisure
Privately owned
Media and content
1000 + Charity/NFP Other VC-backed
Professional services
Search Social
Software
Travel
S E C TO R
C O M PA N Y S I Z E
C O M PA N Y O W N E R S H I P
3
TRENDS Gender pay gap Median salaries reported by male respondents were higher than for female respondents at every level — although the gap is smaller than that for the wider economy.
On average female respondents saw their base salaries increase by 10% from 2013 — almost 5 percentage points more than their male counterparts.
10.54% 94.99%
DIGITAL LEADERS Remuneration REPORT 2014
C-Level
90.13%
EVP / SVP / VP
93.95%
Managing Director / Senior Director / Director
CMI National Management Salary Survey
77% 100.4%
Founders
The only segment of survey respondents where women outperformed men in terms of median salaries was amongst female founders, who paid themselves 100.4% of male founders’ salaries.
MBA pay boost
+0.3% of median salary Respondents with MBAs earn £362 more each year than those without.
4
TRENDS Consistent growth in senior digital salaries
Bonuses account for a fifth of overall salary packages
The median base salary of survey respondents increased 9% from 2013 to 2014, far higher than the rate of inflation and outperforming the average UK employee’s pay rise
Survey respondents reported that bonus payments made up 20% of their OTE. This was far higher than the average for the UK as a whole, and almost on a par with bonuses in the finance and insurance sector.
Median base salary increase
Salary increase of British employees
2.5%
2.4%
Incomes Data Services Report, April 2014
Office of National Statistics
Average bonus % UK wide
Median bonus payments
6%
20%
Office of National Statistics
Average bonus % Finance & Insurance
25%
Office of National Statistics
Support functions are in demand In the past 12 months, a quarter of all respondents moved into a new role. Of these, those within HR, Finance and Operations functions saw the greatest median salary increases. The movers included 10 respondents who founded their own companies and are now in CEO, Technology and Commercial functions (hence the % decrease). Finance
HR
Operations
Marketing
Product
eCommerce Commercial
-8.79% 15.61%
14.69%
6.84%
6.22%
5.16%
DIGITAL LEADERS Remuneration REPORT 2014
9.09%
Inflation at Aug 2014 - Retail Prices Index
-19.25%
4.43% 3.00%
Technology CEO
5
PUBLIC
COMPENSATION BY COMPANY OWNERSHIP AND FUNDING STAGE This table outlines how compensation packages compare between public companies on the one hand, and VC- and PEbacked companies on the other. We asked respondents from public companies to provide us with the value of their annual equity or equity-like compensation, rather than a percentage; whereas with VCand PE-backed companies we asked for the percentage of the company their options or equity represented, assuming all options were fully vested. The table also provides insight into the movement of executives between the different types of organisation during the previous 12 months.
Salary % Change
Base
+11.71%
C-Level
200,000
+3.33%
EVP/SVP/VP
155,000
+8.33%
MD/Director
130,000
Bonus
Previous Company Private
VC
24%
12%
C-Level
85,178
EVP/SVP/VP
56,093
MD/Director
40,033
Equity* C-Level
100,000
EVP/SVP/VP
80,066
MD
44,073 *like compensation
PUBLIC BeneďŹ ts PE
9%
Public
56%
Pension
86%
Healthcare
83% 41%
Company car Living allowance Gym School fees
6% 19% 4% 62%
Life insurance Other beneďŹ ts
6
Happiness
10%
VC & PE Base
Series A
Series B
Series C+
PE
Salary % Change
C-Level
120,000
132,500
140,000
180,000
+1.49%
EVP/SVP/VP
115,668
117,000
130,000
136,000
+6.84%
MD/Director
85,000
90,272
120,000
107,696
+4%
C-Level
29,000
11,010
30,000
52,000
EVP/SVP/VP
10,000
22,000
30,000
64,106
MD/Director
10,000
28,731
30,000
25,000
Bonus
Equity C-Level
Previous Company 4.5%
1.75%
1.7%
VC
2%
Public
50%
27%
VC Benefits 21%
Pension
35%
Healthcare 6%
4%
Living allowance
3%
2%
Gym
3%
4%
School fees
0%
0%
Other benefits
50%
58%
10% 4%
4%
42%
28%
Private
27%
Public
35%
12%
PE
40% 22%
Private
Happiness
3%
VC
2% 32%
PE
20% 13%
0%
14%
18%
24%
66%
64%
47%
Company car
Life insurance
52%
36%
30%
PE
22% 7
FOUNDERS RATIO
SIZE OF TEAM
Men
EDUCATION
Women 0
DIGITAL LEADERS Remuneration REPORT 2014
Lower Secondary School
Bachelors Degree
Masters
PhD / Doctorate
1 - 10
HAPPINESS
4.38
TIME IN ROLE
/5
MBA
Yes
11-50 6m<
51-200
Studying
No 200+
8
Upper Secondary School
6-12m
1-3y
3-5y
5-10y
10y+
REASON FOR MOVING
HOW THEY MOVED
New challenge
Internal move
Greater financial compensation
Headhunted by search firm
Change of location
Direct approach from company
Greater responsibility
Direct approach by former colleague
Change of sector / industry
Introduced through network
Desire to work at specific company
Founded the company
Redundancy
Direct application
Other
Other
FOUNDERS COMPENSATION
1 -50
2014 Median Salary 2014 Median Bonus
COMPANY OWNERSHIP
SIZE OF COMPANY
100,000 20,000
80,133
51-200
120,000
201-500
180,300
501-1000
395,000
VC
2,000
120,000
18,000 20%
24,500
PE
0
227,650
36,060 15%
150,000
Public
1000 +
200,000
64,000 80,133*
Private
80,000
20,000
FUNCTION
CEO
General Management
Technology
Commercial
Strategy
Operations
Finance
HR
Marketing
DIGITAL LEADERS Remuneration REPORT 2014
40%
Product
We have broken out Founder as a separate category – and excluded Founder salary and bonus data from the following pages – because in most cases Founders’ salary and equity are vastly different from other executives with similar job titles.
*Annual value of equity or equity-like compensation.
9
CEO RATIO
SIZE OF TEAM
Men
EDUCATION
Women 0
DIGITAL LEADERS Remuneration REPORT 2014
Lower Secondary School
Bachelors Degree
Masters
PhD / Doctorate
1 - 10
HAPPINESS
4.26
TIME IN ROLE
/5
MBA
Yes
11-50 6m<
51-200
Studying
No 200+
10
Upper Secondary School
6-12m
1-3y
3-5y
5-10y
10y+
REASON FOR MOVING
HOW THEY MOVED
New challenge
Internal move
Greater financial compensation
Headhunted by search firm
Change of location
Direct approach from company
Greater responsibility
Direct approach by former colleague
Change of sector / industry
Introduced through network
Desire to work at specific company
Founded the company
Redundancy
Direct application
Other
Other
CEO COMPENSATION
Median Salary Median Bonus
182,500 77,842
COMPANY OWNERSHIP
SIZE OF COMPANY
VC
1 -50
150,000
51-200
172,500
40,033
201-500
212,588
81,906
501-1000
271,243
1000 +
240,725
50,000
137,500
PE
210,000
69,553 4%
123,122 131,360
27,500 8%
Public
240,400
100,000 197,649*
Private
175,000
90,000
*Annual value of equity or equity-like compensation.
DIGITAL LEADERS Remuneration REPORT 2014
10%
11
GENERAL MANAGEMENT RATIO
SIZE OF TEAM
Men
EDUCATION
Women 0
DIGITAL LEADERS Remuneration REPORT 2014
Lower Secondary School
Bachelors Degree
Masters
PhD / Doctorate
1 - 10
HAPPINESS
3.64
TIME IN ROLE
/5
MBA
Yes
11-50 6m<
51-200
Studying
No 200+
12
Upper Secondary School
6-12m
1-3y
3-5y
5-10y
10y+
REASON FOR MOVING
HOW THEY MOVED
New challenge
Internal move
Greater financial compensation
Headhunted by search firm
Change of location
Direct approach from company
Greater responsibility
Direct approach by former colleague
Change of sector / industry
Introduced through network
Desire to work at specific company
Founded the company
Redundancy
Direct application
Other
Other
GENERAL MANAGEMENT TITLE C-Level 2014 Median Salary 2014 Median Bonus
175,000 60,181
2014 Median Bonus
171,537 80,000
MD / Senior Director / Director 2014 Median Salary 2014 Median Bonus
130,000 45,568
1 -50
110,181
51-200
180,000
201-500
145,000
501-1000
211,947
1000 +
275,000
1 -50
92,000
51-200
140,000
17,500 50,000 40,000 110,973
VC
150,000
PE
176,293
Public
243,000
Private
176,293
VC
150,000
PE
165,630
30,000 72,500
201-500
200,200 180,000
96,160
1000 +
180,000
80,000
60,000
Public
186,000
Private
145,000
1 -50
120,200
30,000
VC
120,000
51-200
107,500
43,000
PE
115,000
Public
144,240
Private
120,281
201-500
121,364 165,000
1000 +
144,240
57,053 104,000 48,145
120,000
501-1000
501-1000
45,000
37,734 56,500 52,500
75,000 30,050 90,000 56,093
39,408 60,000 60,000 31,123
DIGITAL LEADERS Remuneration REPORT 2014
EVP/SVP/VP 2014 Median Salary
COMPANY OWNERSHIP
SIZE OF COMPANY
This category excludes CEOs as they are considered separately on pages 10 and 11. It includes the following job titles: COO, VP International, MD Europe.
13
TECHNOLOGY RATIO
SIZE OF TEAM
Men
EDUCATION
Women 0
DIGITAL LEADERS Remuneration REPORT 2014
Lower Secondary School
Bachelors Degree
Masters
PhD / Doctorate
1 - 10
HAPPINESS
3.82
TIME IN ROLE
/5
MBA
Yes
11-50 6m<
51-200
Studying
No 200+
14
Upper Secondary School
6-12m
1-3y
3-5y
5-10y
10y+
REASON FOR MOVING
HOW THEY MOVED
New challenge
Internal move
Greater financial compensation
Headhunted by search firm
Change of location
Direct approach from company
Greater responsibility
Direct approach by former colleague
Change of sector / industry
Introduced through network
Desire to work at specific company
Founded the company
Redundancy
Direct application
Other
Other
TECHNOLOGY TITLE C-Level 2014 Median Salary 2014 Median Bonus
154,000 31,000
1 -50
120,000
14,651
Private
122,600
51-200
139,500
75,136
Public
200,000
201-500
160,000
Private
120,000
Public
165,000
2014 Median Bonus
MD / Senior Director / Director
Private
100,000
Public
140,000
2014 Median Salary 2014 Median Bonus
111,335 25,000
80,133
32,053
501-1000 1000 +
207,500
1 -50
120,000
51-200
137,727 47,000
25,000
95,000
201-500
125,000
501-1000
220,000
1000 +
162,000
75,067
10,000 10,000
95,000
201-500
79,500
34,000 100,000 69,750
1 -50 51-200
18,000
7,500
84,140
36,060
501-1000
101,000
25,000
1000 +
140,000
30,000
19,000 35,000
DIGITAL LEADERS Remuneration REPORT 2014
EVP/SVP/VP 2014 Median Salary
COMPANY OWNERSHIP
SIZE OF COMPANY
15
PRODUCT RATIO
SIZE OF TEAM
Men
EDUCATION
Women 0
DIGITAL LEADERS Remuneration REPORT 2014
Lower Secondary School
Bachelors Degree
Masters
PhD / Doctorate
1 - 10
HAPPINESS
3.64
TIME IN ROLE
/5
MBA
Yes
11-50 6m<
51-200
Studying
No 200+
16
Upper Secondary School
6-12m
1-3y
3-5y
5-10y
10y+
REASON FOR MOVING
HOW THEY MOVED
New challenge
Internal move
Greater financial compensation
Headhunted by search firm
Change of location
Direct approach from company
Greater responsibility
Direct approach by former colleague
Change of sector / industry
Introduced through network
Desire to work at specific company
Founded the company
Redundancy
Direct application
Other
Other
PRODUCT TITLE C-Level 2014 Median Salary 2014 Median Bonus
170,000 26,000
1 -50
100,167
51-200
170,000
2014 Median Bonus
MD / Senior Director / Director 2014 Median Salary 2014 Median Bonus
98,500 17,785
Private
150,000
Public
172,720
Private
117,000
Public
156,236
Private
90,272
Public
125,000
13,000 103,632
201-500 501-1000 1000 +
172,720
1 -50
111,335
51-200
118,600 32,517
26,000
93,529
103,632
10,000 14,757
201-500
134,211
501-1000
128,100
55,547
1000 +
140,000
45,000
1 -50
80,136
51-200
87,500
201-500
45,000 20,033
41,818
5,000 18,000
73,742 4,705
501-1000
156,000
0
1000 +
125,000
32,053
10,000 24,040
DIGITAL LEADERS Remuneration REPORT 2014
EVP/SVP/VP 2014 Median Salary
COMPANY OWNERSHIP
SIZE OF COMPANY
17
MARKETING RATIO
SIZE OF TEAM
Men
EDUCATION
Women 0
DIGITAL LEADERS Remuneration REPORT 2014
Lower Secondary School
Bachelors Degree
Masters
PhD / Doctorate
1 - 10
HAPPINESS
3.60
TIME IN ROLE
/5
MBA
Yes
11-50 6m<
51-200
Studying
No 200+
18
Upper Secondary School
6-12m
1-3y
3-5y
5-10y
10y+
REASON FOR MOVING
HOW THEY MOVED
New challenge
Internal move
Greater financial compensation
Headhunted by search firm
Change of location
Direct approach from company
Greater responsibility
Direct approach by former colleague
Change of sector / industry
Introduced through network
Desire to work at specific company
Founded the company
Redundancy
Direct application
Other
Other
MARKETING TITLE
1 -50
C-Level 2014 Median Salary 2014 Median Bonus
170,000 40,000
2014 Median Bonus
128,213 35,000
MD / Senior Director / Director 2014 Median Salary 2014 Median Bonus
120,000 27,750
80,000
51-200
190,000
201-500
117,087
501-1000
175,000
1000 +
175,000
1 -50
107,163
51-200
140,000
201-500
128,213
501-1000
120,200
1000 +
145,000
40,000 12,000
Private
155,000
Public
170,000
Private
128,213
35,000
Public
129,603
28,527
Private
115,000
30,000
Public
120,000
22,500
11,000 60,000
5,000 165,000 55,000
5,500 35,000 60,000 40,067 28,527
1 -50
100,000
51-200
110,000
22,500 26,375
25,000
201-500
103,750
501-1000
140,067
105,133
1000 +
122,500
35,000
DIGITAL LEADERS Remuneration REPORT 2014
EVP/SVP/VP 2014 Median Salary
COMPANY OWNERSHIP
SIZE OF COMPANY
19
COMMERCIAL RATIO
SIZE OF TEAM
Men
EDUCATION
Women 0
DIGITAL LEADERS Remuneration REPORT 2014
Lower Secondary School
Bachelors Degree
Masters
PhD / Doctorate
1 - 10
HAPPINESS
3.64
TIME IN ROLE
/5
MBA
Yes
11-50 6m<
51-200
Studying
No 200+
20
Upper Secondary School
6-12m
1-3y
3-5y
5-10y
10y+
REASON FOR MOVING
HOW THEY MOVED
New challenge
Internal move
Greater financial compensation
Headhunted by search firm
Change of location
Direct approach from company
Greater responsibility
Direct approach by former colleague
Change of sector / industry
Introduced through network
Desire to work at specific company
Founded the company
Redundancy
Direct application
Other
Other
COMMERCIAL TITLE C-Level 2014 Median Salary 2014 Median Bonus
132,500 55,000
2014 Median Bonus
130,000 50,000
MD / Senior Director / Director 2014 Median Salary 2014 Median Bonus
115,000 45,000
1 -50
122,500
51-200
132,500
201-500
150,000
40,000 49,040
Private
132,500
55,000
Public
67,500
501-1000 1000 +
170,100
1 -50
122,181
51-200
115,000
201-500
125,000
501-1000
135,000
1000 +
150,000
1 -50
90,000
51-200
90,000
201-500 501-1000 1000 +
140,000 87,500 126,500
95,033
77,500 46,000
Private
120,363
Public
147,120
Private
101,000
Public
120,000
58,047 60,000
0 70,000 50,000
0 37,500 50,000 45,000 50,000
28,527 50,000
DIGITAL LEADERS Remuneration REPORT 2014
EVP/SVP/VP 2014 Median Salary
COMPANY OWNERSHIP
SIZE OF COMPANY
21
FINANCE TITLE
C-Level 2014 Median Salary
2014 Median Bonus
EVP/SVP/VP
DIGITAL LEADERS Remuneration REPORT 2014
2014 Median Salary
2014 Median Bonus
127,500 21,219 121,000 31,473
MD / Senior Director / Director 2014 Median Salary
2014 Median Bonus
107,500 22,000
1 -50
120,000
51-200
125,000
201-500
132,500
501-1000
185,000
1000 +
250,000
1 -50
104,173 92,500
51-200 201-500
108,500
501-1000
150,000
1000 +
141,000
1 -50 51-200
Private
125,000
Public
170,000
104,173
Private
104,173
23,036
Public
139,731
0 10,000
TITLE
C-Level 2014 Median Salary
135,000
EVP/SVP/VP 2014 Median Salary
2014 Median Bonus
120,000 20,000
MD / Senior Director / Director 2014 Median Salary
2014 Median Bonus
107,696 23,020
24,073 35,000
15,000 60,000 35,000
19,904
Private
86,060
Public
114,000
2,805 24,020
201-500 501-1000
102,080
17,020
1000 +
124,549
28,551
COMPANY OWNERSHIP
SIZE OF COMPANY
125,000 20,000
50,000
50,000
70,000 0 89,553
15,000
19,232
OPERATIONS 2014 Median Bonus
22
COMPANY OWNERSHIP
SIZE OF COMPANY
Private
1 -50 51-200
120,000
201-500
130,000
10,000
125,000
20,000
Public
30,000
501-1000 1000 + 1 -50
75,000
15,000
51-200 201-500
120,000
501-1000
120,000
30,000
1000 +
130,000
25,000
92,000
201-500
100,000
501-1000
140,000
1000 +
127,113
120,000
Public
130,000
Private
107,696
Public
109,000
15,000 25,000
15,000
1 -50 51-200
Private
5,000 20,000 40,000 37,500
18,500 37,533
HR TITLE
C-Level 2014 Median Salary
2014 Median Bonus
EVP/SVP/VP 2014 Median Salary
147,500 51,000 140,607 18,013
MD / Senior Director / Director 2014 Median Salary
2014 Median Bonus
100,167 16,027
1 -50
Private
51-200
Public
201-500
140,000
501-1000
155,000
C-Level 2014 Median Salary
52,000
1000 + 1 -50 51-200 201-500
75,000 0 60,000
153,000
2014 Median Bonus
EVP/SVP/VP 2014 Median Salary
2014 Median Bonus
137,120 33,479
MD / Senior Director / Director 2014 Median Salary
2014 Median Bonus
120,000 33,000
Private
128,213
Public
155,000
Private
100,000
Public
135,000
16,027 60,000
16,027
96,160
501-1000 1000 +
40,000
177,500
1 -50
48,040 14,023
51-200 201-500 501-1000 1000 +
105,000 95,250
9,000 27,500
17,000 12,513 17,500
135,000
COMPANY OWNERSHIP
SIZE OF COMPANY
170,117 80,033
51,000
50,000
eCOMMERCE TITLE
147,500
1 -50
Private
140,233
51-200
Public
200,000
1 -50
Private
130,000
51-200
Public
144,240
Private
116,093
Public
122,500
40,067 120,000
201-500
DIGITAL LEADERS Remuneration REPORT 2014
2014 Median Bonus
COMPANY OWNERSHIP
SIZE OF COMPANY
501-1000 1000 +
80,033
170,117
201-500
130,000
25,000
501-1000
115,548
34,905
1000 +
184,620
1 -50
133,000
51-200
155,000
201-500
72,120
501-1000
116,193
1000 +
116,093
25,000 34,905
78,527 36,000 32,500
30,020 35,000
24,040 54,090 27,500
23
METHODOLOGY DIGITAL LEADERS Remuneration REPORT 2014
For non-UK respondent data, the following exchange rates for 1 GBP were used for comparison: AED AUD CAD CHF DKK EUR HKD ILS INR KWD MYR NOK OMR SEK SGD THB USD ZAR
6.1 1.66 1.81 1.51 9.3 1.25 12.88 5.87 100.83 0.47 5.25 10.24 0.64 11.42 2.07 52.96 1.66 17.63
Rates correct as of 19/8/14
We surveyed 954 respondents for our Digital Leaders Remuneration Report. A link to an online survey was emailed to c.15,000 of The Up Group’s network of senior digital executives in August 2014. 75.6% of respondents were UK-based, but we have also included non-UK respondent data in our findings. Location appeared to have little or no influence on the data so we decided not to use this as a filter when presenting our findings. References in the survey to private companies are to unlisted companies that are not VC- or PE-backed. GBP is used throughout. Our data was cleaned, categorised and reported in that state – without adjustment or refinement. Some erroneous results can and will occur. Throughout the report, median salary values have been presented to account for outliers in respondent data.
ABOUT US The Up Group delivers outstanding digital talent and industry insight for the world's most innovative companies. Our business is driven by a global digital talent network unique in its quality, diversity and depth, and a profound understanding of the digital economy. This enables us to place exceptional candidates into Board, CxO,VP and Director roles across geographies, sectors and functions, and offer world-leading due diligence, talent-mapping, and professional networking services. We have a proud track record of building senior management teams for clients ranging from global tech giants and corporates undergoing digital transformation, to establised businesses looking to expand internationally and fast-growing tech stars. We have broad cross-functional expertise, spanning general management, product, marketing, technology, commercial, sales and business development, operations, finance, HR and strategy. Based in London, and with offices in Scandinavia, The Up Group serves clients and candidates from across the world
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