Many staffing firm executives saw a boost in their take-home compensation last year compared to the year before, even as inflation took a bite out of their spending power.  

Compensation packages rose by a median of 4% in 2022 to a median of $1,705,074, according to SIA's latest Staffing Executive Compensation Analysis. According to the International Monetary Fund. global inflation reached about 8.8% that year,

Regional compensation differences were notable. In the Americas, compensation climbed by a median of 8.5%, while firms in Europe, the Middle East and Africa experienced a median decline of 1.2%. Notably, compensation for the three Asia Pacific firms on the list surged by a median of 57.6%. 

"The structure of executive compensation varies significantly across regions, reflecting diverse cultural norms, corporate governance practices, legal frameworks, and tax policies", wrote Michael Schultz, an SIA research analyst and the report's author.

The report also found that compensation as a percentage of company revenue ranged from 0.06% at the 25th percentile to 0.34% at the 75th percentile.   

Compensation structures also differed significantly across regional geographies. US-based firms appeared to emphasise stock awards, which comprised an average of 40% of total compensation. Conversely, firms headquartered in the UK leaned more toward base salary (46%) and discretionary bonuses (32%). In contrast, executive compensation at continental European firms primarily relied on base salary (65%). 

In the study of 81 executives, the highest-paid executives identified were Jonas Prising, CEO of ManpowerGroup Inc. (USD 13.1 million), and Gary D. Burnison, President and CEO of Korn Ferry (USD 11.5 million).

Among the 42 firms studied, 24 were based in the Americas (23 in the US and one in Canada), 15 in Europe, the Middle East and Africa. Three firms in the Asia Pacific region were studied. The median percentage increase in compensation considered executives who had completed at least two years at their respective firms and reported their compensation.

In terms of compensation, total compensation for staffing firm executives increased by a median of 4.0% in 2022.

Story by Henry Liu