Should Executive Pay Be Transparent?
Norman Alex
Norman Alex is an international consulting boutique providing executive search and corporate development services.
By 2026, most European companies will be required to disclose salary data under the EU Pay Transparency Directive (Korn Ferry). The conversation is no longer about whether to be transparent, but how. At the executive level, where packages are complex and sensitive, the question is particularly pressing.
Across the world, expectations are rising. In the United States, more than a dozen states already require salary ranges in job postings (NFP). In the UK, 71 per cent of job adverts now include pay details, compared with 48 per cent in 2019 (Reuters). In India, over half of job postings disclose salary ranges (Economic Times). The cultural shift is under way even without legislation.
Evidence suggests that transparency delivers tangible results. A Harvard Business Review study found that employees are more satisfied with their own pay when ranges are shared openly (HBR). Academic research in the UK indicates that gender pay gap reporting reduced disparities by nearly 18 per cent (Arxiv). SHG’s 2024 compensation report noted that firms adopting transparent practices tend to have smaller internal pay gaps and higher employee satisfaction (SHG Group).
For employers, the advantages are clear. Transparency builds trust with candidates, reduces the risk of last-minute negotiation breakdowns, and strengthens an organisation’s reputation. It also forces leadership teams to examine internal equity more closely. Yet the executive market presents unique challenges. Compensation at this level often includes long-term incentives, equity and bespoke benefits. Quoting a single figure can be misleading or even counter-productive. Many firms now adopt a layered approach: offering realistic ranges early in the process, while preserving the flexibility needed to tailor final packages.
Technology is helping. A 2025 Korn Ferry survey found that 22 per cent of firms already use AI for external pay benchmarking, with 63 per cent considering it (Business Insider). By drawing on large datasets, these tools give employers greater confidence in publishing pay bands and in communicating the rationale behind them.
The trend is not temporary. Regulation, workforce expectations and competitive positioning are converging. A 2025 survey by Affirmity found that two thirds of companies expect pay equity to improve over the next two years, citing both employee pressure and legislation as the drivers (Affirmity).
Salary transparency in executive hiring is no longer a passing trend but a structural shift. Organisations that adapt with clarity and fairness will be better positioned to attract and retain the leadership talent that drives long-term success.
What do you think is the right balance between transparency and discretion at the executive level?
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