Senior vice presidents “SVPs” can wield tremendous compensation packages within major corporations. These high-level managers are responsible for many factors that directly affect the company’s bottom line. In many industries, executive salaries may eclipsed by bonus and incentive compensation plans. These incentive packages are often linked to their team’s performance. As a result of these significant compensation plans, senior vice president positions of major corporations are highly sought after.
Senior vice presidents serve as the link between chief level executives and front line managers. They initiate and disseminate policies administered by top management to increase profits. Additionally, they collect and process information from mid- and lower-level managers. Then, they use that knowledge to customize the deployment of those policies to more effectively achieve company objectives. SVP compensation plans generally pay more when the company exceeds their financial targets.
Low Range Salary Factors
The salary range for SVPs can vary widely. Among the primary factors affecting pay are company size and competition. An example of a lower-end salary a some senior vice president in the healthcare insurance industry earned over $700,000 in 2010, according to WBUR, an NPR news station. Fortune 500 companies often offer large compensation packages to attract and recruit the best talent.
High Range Salary Factors
The pay at the higher-end of the salary range for SVPs can be much higher. The influencing factors affecting top-end pay consist of company profitability and track record. For example, a vice president of corporate development with a successful publicly traded Internet company can earn over $5 million annually, according to Forbes.com. Alternatively, an executive working for a major technology company can earn over $15 million yearly, also according to Forbes.com.
The demand for senior vice presidents is good. Employment for these senior level managers is expected to remain constant and will vary by specific industry, according to the Bureau of Labor Statistics. However, competition is expected to be strong because of the prestige and high pay. Major companies will continue to pay increasingly larger compensation packages to retain and reward the best prospects in order to keep profits growing.