Average salaries across all digital disciplines down for digital industry managing directors, partners and chief executives earning in excess of £300K declined in 2012, as the global recession put pressure on top pay packages.

The results of the annual SoDA Salary Survey revealed that nearly a quarter (23 percent) of respondents earned £300,000 ($451,185/Euro 347,161) or more in 2012, compared to more than a third (35 percent) in 2011, and a quarter (25 percent) in 2010. Static and declining salaries at some of the world’s leading digital marketing, technology and elite production companies, highlights how the industry is affected by shrinking budgets and the global economy. With strategy playing a larger role in the service offering of member companies, part of the downward drift can also be attributed to the recruitment of a greater diversity of both junior and senior strategists and planners during 2012.

A chief technology officer (CTO) earned an average £96,000 ($144,379/Euro 111,066) down by five percent on 2011 figures. Account directors averaged £69,000 ($103,772/Euro 79,865) down 16 percent year on year, while producers took home . £43,000.($64,704/Euro 49,771). In addition to this, nearly half of all creative directors at respondents’ companies made between £70,000 and £95,000($105,290/Euro 81,004 and $142,894/Euro 109,921) with average salaries trending down on previous years. The study also found that variable compensation, such as bonuses, equity and stock are playing a larger role in the overall compensation of top executives. These figures are not reflected in the base rates. The study also revealed differences between salaries of executives in the USA compared to Europe and the UK. The average salary of a US-based art director was £57,000 ($87,702/Euro 66,037) compared with 80 percent of European agencies paying less than £50,000.($75,127/Euro 57,920). Only 14 percent of art directors in the USA receive less than £50,000. 29 percent of CTOs in North America earned between £126,000 and £158,000 ($189, 522 and $237, 560 or Euro 145,875 and Euro 182,923) whereas none of their European counterparts earned the equivalent or more. The majority of European CTOs (75 percent) fell into the £95,000 – £111,000 ($142, 894 to $167,027 or Euro 109, 921 and Euro 128, 479 ) pay bracket. Looking forward, the labour market is expected to tighten throughout 2013. For creative directors and other key senior executives salaries are expected to rise due to a shortage of people with the right level of skills. This rise will also be compounded by the fact that 39 percent of respondents to SoDA’s 2013 Digital Marketing Outlook Survey were intending on increasing digital marketing spend by reallocating existing budgets to digital.

Chris Buettner, executive director at SoDA says: “It’s tough at the top due to a variety of factors from shrinking client budgets to the macroeconomic implications of global economic health. Incentive and variable based pay is also playing a more dominant role in the overall numeration package not reflected in the base. ” This confidential study captured the average salaries that SoDA’s members offer employees for a wide array of agency and production company positions. SoDA counts Media Monks, Reactive, B-Reel, rehabstudio, Huge, Made By Many, Mint Digital, Less Rain, SapientNitro, Society46 and unit9 among its UK members. Grow, an inaugural winner of the Cannes Mobile Lions 2012, is also part of the society.