Managing directors are the highest-paid corporate executives, bar none. The ultimate leaders are responsible for business operations. They get paid more than anyone else in the company. Some companies have a rule: junior executives can’t earn more than senior executives. As a result, managing directors receive higher pay due to this policy. Managing directors command a high salary due to their vast experience. Yet, even without policies, they receive generous compensation. Their track record also contributes to their high salary.
Managing directors’ salaries range from 100,000 to several million euros. The salary depends on the size of the company and how the business is doing. Yet, the catch is that it takes a lot of effort, skill, natural ability, and work experience to reach this level. Only a small number of employees will become managing directors. It is easier to reach this level in smaller companies, but the pay is also naturally adjusted.
Salaries may vary depending on the industry, experience, and company policies. We based the above figures on estimates from glassdoor.co.uk.
Managing Directors’ Salary and Pay
In Germany, managing directors earn an average base salary of €120,865 per year.
In the Netherlands, the average managing director’s base salary is €122,569.
In France, managing directors earn an average yearly base salary of €140,762.
According to Glassdoor, the average yearly base salary for a managing director in the UK is €143,427.
In Europe, the salary for a managing director ranges from EUR 98,000 to EUR 143,000.
Managing director positions are found at the company’s headquarters. These positions are usually located at the business’s main office. This means that these roles are concentrated in major business hubs across Europe. Managing directors receive various perks, such as a company car and club memberships. The corporate policy determines these additional perks.
Managing Director Profit-Sharing, Stock Options, Cash Bonus
There is a massive variable component applicable to managing directors. The only other executives who come close are top-performing sales executives. They can manage directors. They have similar variable compensation as a percentage of their total compensation. A managing director’s pay includes cash and performance-linked stock options. Some may also receive profit-sharing. This variable component is often much higher than the fixed salary.
Providing stock options achieves a dual purpose. The company’s share price affects an employee’s compensation. This provides rewards based on their performance. The company does this to motivate employees to make good decisions. These decisions will increase the company’s stock price over the long term. Stock options are preferred in specific industries. They are mandatory for start-ups. The founders often offer top-level executives a significant stake in the company. This helps attract experienced managing directors to join the start-up.
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