Bonuses of some CEOs in GCC exceed their annual salaries, survey says

CEO survey GCC

A recent survey conducted by Cooper Fitch sheds light on the compensation structures and growth priorities of CEOs in the Gulf Cooperation Council (GCC) countries, particularly focusing on the United Arab Emirates (UAE). According to the findings, a significant portion of CEOs in the UAE identify recruitment and retention of talent as their biggest obstacle to growth, highlighting the competitive nature of the job market in the region.

The survey, titled the 3rd Annual CEO Report, underscores the challenges faced by CEOs in navigating the dynamic business landscape of the UAE. With 52 percent of CEOs citing recruitment and retention of talent as their primary hurdle to growth, it becomes evident that attracting and retaining skilled professionals is a critical concern for businesses in the country.

Additionally, the report reveals that 43 percent of chief executives in the UAE plan to prioritize product and service expansion as a key component of their growth strategies for 2024. This emphasis on expansion underscores the ambitious growth agendas of companies operating in the UAE, as they seek to capitalize on emerging opportunities in the market.

Furthermore, diversity and inclusion initiatives feature prominently on the agendas of CEOs in the UAE, with 65 percent having implemented clear strategies for the inclusion of female executives. This focus on diversity reflects a broader trend towards fostering inclusive workplaces and harnessing the diverse talents of the workforce.

The competitive nature of the UAE job market, fueled by strong economic growth following the pandemic, has led to a surge in demand for skilled professionals. This heightened competition for talent has compelled some companies to explore alternative solutions, such as remote work arrangements, to attract and retain top talent while also managing costs effectively.

The survey, which encompassed CEOs from various sectors including fast-moving consumer goods (FMCG), financial services, hospitality, manufacturing, and real estate, provides valuable insights into the challenges and priorities of executive leaders across different industries.

One notable finding from the survey is the significant growth in bonuses for CEOs in the region. With 29 percent of respondents anticipating an uptick of between 1 percent and 10 percent in their 2023 bonuses, and a fortunate 4 percent expecting their bonuses to double year-on-year, it is evident that bonuses play a significant role in executive compensation packages.

Moreover, the survey highlights the substantial bonuses received by CEOs in the GCC, with over a quarter (27 percent) of CEOs expecting bonuses equivalent to 1-3 months of their annual salary. Additionally, 42 percent of CEOs anticipate bonuses equal to 4-6 months' pay, indicating the lucrative nature of executive compensation in the region.

An interesting trend identified in the survey is the prevalence of bonuses exceeding CEOs' annual salaries, with 6 percent of respondents reporting bonuses that surpass their yearly earnings. This trend underscores the generous remuneration packages offered to top executives in the GCC, reflecting the importance of executive talent in driving business success.

In conclusion, the Cooper Fitch survey offers valuable insights into the compensation structures and growth priorities of CEOs in the GCC, particularly in the UAE. With recruitment and retention of talent emerging as a key challenge, and bonuses playing a significant role in executive compensation, the findings provide valuable insights for businesses seeking to navigate the complexities of the regional market.