Better CIO/CFO relationships see CMO salaries soar

First CMO Council benchmarketing report on chief marketing officer compensation finds digital marketing skills are a key ingredient in securing better salaries

Marketing salaries are higher for those directly reporting to the CEO
Marketing salaries are higher for those directly reporting to the CEO

The highest paid CMOs are the ones who have developed strong alliances with the CIO and CFO and report directly to the CEO, CMO Council’s forthcoming report on the state of marketing leadership globally has found.

The new global CMO Compensation Report, which aimed to benchmark CMO compensation and marketing reporting structures, and is set to become an annual release, is part of the association’s eighth edition of its State of Marketing survey, which will be released in coming months. The research was based on responses from 345 of the 525 participants in the wider research piece.

According to the CMO Council, CMOs earning the highest levels of base compensation tend to be those focused on driving business performance through key metrics such as top-line growth, market share and efficiencies.

B2C marketing leaders were also found to have a higher salary base than either those in B2B or in hybrid organisations, and compensation overall was directly tied to the size of the firm, with larger organisations paying CMOs better. However, base compensation was not tied to the number of people the CMO manages.

On average, CMOs receive a base salary of US$100,000-$349,999 per annum. The largest majority (42.6 per cent) in Asia-Pacific earn between $100,000-$199,000, compared to the largest percentage of North American CMOs (44.4 per cent), who earn between $200,000-$349,999.

Those making more than US$500,000 a year are more likely to report directly to the CEO, with key accomplishments including restructuring marketing to drive results, improving the yield/accountability of marketing, and building digital capabilities. Those on less than $100,000 are not surprisingly, the least likely to be valued by top leadership.

CMOs with superior digital marketing skills also tended to see their salaries rise as their organisation’s digital marketing performance improves.

In a sign of the continuing evolution of the role of marketing and the confusion still around job functions, titles such as CMO, VP of marketing or senior VP of marketing don’t always correlate with better base compensation. For example, the report pointed out professionals holding the VP of customer experience or director of marketing roles had a higher average base compensation than those with VP of marketing title.

What was also obvious in the report was the dissatisfaction marketers feel about their overall financial entitlements. Less than half of all those surveyed, in fact, believe they are fairly paid.

“This high degree of dissatisfaction suggests that either CMOs are actually underpaid relative to key benchmarks identified in the report, or that CMOs just believe they are underpaid,” commented report author, Dr Kimberly Whitler of the Daren School of Business at the University of Virginia.

“This important finding may be a key driver of CMO turnover and suggests both a greater need: 1) to understand why CMOs believe they are underpaid, and 2) for more collaboration between executive recruiters, CHROs, and CEOs to ensure that CMOs are fairly compensated.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Thanks for sharing this post, its really good information I get through this blog.CDPO Online Exam Training

Infosectrain01

3 ways Booking.com is improving its B2B marketing game

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in