Executive compensation has been rising steadily since the pandemic, reaching a high-water mark in 2023. However, a cooldown in several market sectors could result in comp increases receding in the coming years. Average executive salary increases among construction firms hit 5.6% in 2023—the highest level of increase since 2000, according to data from industry compensation research firm PAS.
This year, however, construction firms signaled to PAS that they are likely to pull back on the levels of pay increases. PAS’ 2024 Executive Compensation Survey for Contractors showed that firms anticipate giving executives a 4.7% increase in 2024. However, firms tend to underestimate salary forecasts by around 0.5%, so average increases are likely to be around 5% this year, according to Jeff Robinson, president of PAS.