Business management salaries are going up with the rise in digital business
Business management salary growth in the US is accelerating, with average salary rises ranging from 2% to 6% in the past year, according to the latest salary data from PayScale.
But the median increase for those in the corporate and management ranks has been around 1% annually.
The average salary rose to $129,400 from $116,900 in 2016, the data shows.
And the average wage for those with at least five years of experience jumped to $133,100 from $130,400 in 2016.
Average salary growth among executives in the financial services, healthcare, health care, consumer products and retail industries in the U.S. was 4.6% in 2016 from 3.6%, according to PayScale data.
The average salary for those holding the same level of experience rose to more than $180,000 from more than a quarter of that amount.
A number of high-profile CEOs were featured in the PayScale 2016 salary survey.
Chief Executive Officer of Walmart, Jeffrey P. Bezos, earned the top spot, with a salary of $157,400, followed by President and CEO of Amazon, Jeff Bezos, who earned $146,900, and Chief Financial Officer of JPMorgan Chase, Jamie Dimon, who got $147,000.
President and CEO Michael Dell of Dell, the world’s largest computer hardware maker, also made the list, with his $144,400 salary.
The survey also revealed a trend among CEO salaries, with the average salary of CEOs of Fortune 500 companies going up more than 1% in one year, from $162,900 to $164,200.CEO salaries have also increased in recent years in the healthcare, education and retail sectors, with CEOs of these sectors taking home an average of $133.5 million more in 2016 than in 2015, according the survey.
The most common salary among US CEOs in 2016 was $173,900.
The median pay for these CEOs was $135,400.CEOs of retail companies were second in pay, with CEO salaries averaging $145,400 and CEO salaries at the top of the pay scale of $175,900 a year.CEO compensation has also increased among US companies with the highest-earning CEOs.
For example, in 2016 the average CEO of Coca-Cola took home more than twice as much as the average US CEO, at $170,900 compared to the average of the $128,800 CEO of the average American company.
The PayScale survey also shows that a number of CEOs are being promoted, with pay increases of 3% to 5% in four of the past five years.
The biggest pay increases were among CEO of retail businesses.
CEO salaries rose 3.3% in 2017 to $177,400 compared to $169,100 in 2016 and $165,000 in 2015.
The highest-paid CEO of 2016 was US President and Chief Executive of Starbucks, Howard Schultz, who received $177.1 million in compensation.
The US stock market is booming, with stock prices up more over the past six months than in any year since the financial crisis.
The stock market in 2017 has more than doubled in value over the previous five years, with annual gains topping $20 billion.
The Dow Jones Industrial Average has surged more than 930% since the start of the year.
The number of companies reporting annual revenue has also surged.
This year the Fortune 500 and its peers, including Walmart, Microsoft, Intel and Cisco, reported annual revenue of $2.1 trillion.
The annual stock market gains have helped to drive stock prices higher and raise CEO pay to record levels.
The stock market boom and stock market declines are pushing up the average pay for CEOs, the biggest contributor to CEO pay, according of PayScale’s data.