CEO Survey: Expect Salary Increases To Stall In 2023

But now, as the economy slows, that trend is likely to end—fast—especially among executives and middle managers, according to our latest survey of American CEOs.

A recent poll of 333 CEOs in the U.S., conducted January 10-12 by Chief Executive, finds pay increases among almost every class of worker are likely to slow dramatically in 2023, an abrupt U-turn from recent trends. Compared to 2022, smaller proportions of workers in all seniority levels are projected to see salary increases of 5 percent or more, with companies instead opting to increase salaries at more modest rates, if at all.

According to our research, some 52 percent of middle managers saw a salary increase of at least 5 percent in 2022. That proportion is expected to drop to just 26 percent this year, according to CEOs we surveyed.

Only 20 percent of other senior executives are projected to see a 5 percent or more raise to their salary in 2023, down sharply from the 34 percent who got a raise of that size last year. For front-line and back-office employees, 57 percent saw raises of 5 percent or more in 2022. Just 32 percent can expect a similar gain this year.