What is the average entry-level salary?
Executives are more and more numerous in USA. And good news: this increase is also accompanied by an overall increase in their remuneration.
In 2020, the average annual salary of an executive was €50,000 gross. But what about junior executives, freshly graduated, about to enter working life?
Salary of a young executive: how much?
According to the survey conducted by the CGE, in 2020, a junior executive received an average gross annual salary of €35,714, or €2,976 gross/month. As for junior managers, the remuneration is slightly higher: it is €36,746 gross on average. But these figures do not take into account an essential element of executive compensation: bonuses.
If we include the bonuses in the calculation, still in 2020, the average annual remuneration of junior executives then amounts to €38,833 gross, or €3,236 gross/month. For junior managers, the estimated salary is €41,218 gross/year, or €3,434 gross/month.
However, this is less than the minimum gross salary expected by future executives. Indeed, according to a survey conducted by Gallileo among students from USA Grandes Ecoles (HEC, Polytechnique, Dauphine, etc.), the average expected salary is a minimum of €49,024 gross.
However, you should know that an executive salary (beginner or not) does not include only fixed compensation. The overall salary is made up of:
- fixed remuneration: an identical amount paid each month into the bank account of the junior manager in exchange for the work carried out for the company. It is from this portion that employee contributions and income tax (with the withholding tax) are deducted;
- variable compensation: it depends on the employer and can be added to the fixed compensation if a quantitative objective is achieved, for example;
- bonuses: this may be the 13th month bonus, performance bonus, incentive bonus, or even a welcome bonus for new executives;
- benefits in kind: company car, computer, telephone, etc.
All of these elements should not be overlooked and can be negotiated when hiring.
Beginner executive: how to negotiate your first salary?
Did you get the job? Congratulation ! Then comes the moment of negotiation. A job offer usually includes a salary range because the company allows itself some wiggle room. It is therefore up to you to negotiate – with tact – to obtain the highest range offered. Our advice: focus on your strengths. Soft skills (flexibility, management, negotiation, etc.), mastery of a language, possession of an address book, value and level of the diploma, knowledge of the market, internships carried out… Note everything that can enhance you and give weight to your profile.
As a junior executive, it is possible that a minimum compensation is offered by the company. If it suits you, you can also decide to wait to prove yourself before asking for a raise later. Some companies have a very strict salary scale, which varies according to the number of years of seniority. In the meantime, you can negotiate other elements of your total compensation, such as benefits in kind.