Pavilion, the leading private membership for high-growth leaders, today released its 2022 Executive Compensation Report examining the current state of executive compensation and benefits to highlight how executives can secure their financial futures through their employment contracts.
The report is designed to help executives build compensation packages that support their short and long-term security and align with the rest of the organization, especially amid uncertainty, with deceleration in venture capital funding, layoffs and macro impacts. For this report, Pavilion surveyed more than 800 of its members which are primarily executives and associates across sales, marketing, customer success, revenue operations, finance, and other industries.
Key insights from the report reveal that the majority of executives lack key structural benefits critical to ensuring long-term financial security and opportunity, such as the right to secondary sales, dilution protection, and buyback equity. This may be a result of the fact that few executives hired a lawyer during contract negotiations in 2021, according to the report, and most executives signed a contract within a week or less of an offer being made.
“When executives rush to accept a job offer, which the report indicates a majority are doing, they’re missing out on opportunities,” says Sam Jacobs, Founder and CEO of Pavilion. “Executives in today’s market need to commit proper time and resources, like legal counsel and professional development programs, during the negotiation phase to ensure they’re receiving a well-structured, future-proof package.”
Pavilion found that executives should be focused on more than salary alone and look at things like stock options, milestone payments, and severance packages to put them in a position to receive large lump sum payments throughout their life. Focusing marginally less on upfront cash and more on protective payments and alignment with the organization can help ensure that executives receive the best and most equitable offer possible.
“Informed executives have a chance to restructure compensation agreements, which have generally been skewed in favor of companies,” says Jacobs. “They can negotiate their way to a fundamental realignment of compensation structure, not at the expense of their employers, but for an equitable contract that benefits companies and executives alike.”
To access 2022 Executive Compensation Report, please visit: https://www.joinpavilion.com/resource/2022-pavilion-executive-compensation-report
Pavilion was founded in 2016 as a support network for revenue leaders. Since opening its first chapter in New York City, it has grown into an international center providing peer-to-peer connection, training and development, and career resources for all high-growth professionals. Pavilion is always imagining new ways to help current and future leaders unlock and achieve their professional potential. For more information about Pavilion or to become a member of one of its worldwide chapters, please visit joinpavilion.com.
North 6th Agency for Pavilion
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