CXO Research Institute Analysis of Non-Registered Executives in Top 100 Companies
Among 846,824 Employees, 7,069 Executives...0.83%
Declined from 0.94% in 2015 to 0.76% in 2021, Then Increased
The probability of an employee at one of South Korea's top 100 companies becoming an executive was found to be 0.83%.
On the 27th, Korea CXO Research Institute, a corporate analysis specialist, announced the status of non-registered executives and employees based on the semi-annual reports of the top 100 listed companies by sales. Since the likelihood of a regular employee being promoted to a registered executive is very low, the CXO Research Institute explained that only non-registered executives were included in this survey.
The survey results showed that the number of employees at the top 100 companies this year was 846,824. Executives accounted for 7,069, which is 0.83% of the total employees. The ratio was approximately 119.8 employees per one executive. This means that only one out of every 120 employees became an executive.
The number of employees per one executive in the top 100 companies by year was 105.2 in 2011 → 106.8 in 2015 → 124.5 in 2018 → 131.7 in 2021, then changed to 120.9 last year → 119.8 in 2023.
The subway platform of Line 5 at Gwanghwamun Station in Seoul is crowded with commuters on their way to work. Photo by Jo Yongjun jun21@
The probability of an employee at a top 100 company being promoted to an executive is 0.83% this year. It decreased from 0.95% in 2011 → 0.94% in 2015 → 0.8% in 2018 → 0.76% in 2021, then slightly increased to 0.82% last year → 0.83% this year.
A lower number of employees per one executive means a higher chance of promotion to executive. Companies with fewer employees per executive were Hyundai Corporation (13.4 employees) and POSCO Holdings (15.3 employees).
IBK Industrial Bank of Korea (916.1 employees) was found to be the company where it is hardest to become an executive. Unlisted companies such as Woori Bank (805.3 employees), Shinhan Bank (637.2 employees), Hana Bank (496.5 employees), and Kookmin Bank (453.8 employees) also had fierce competition. The CXO Research Institute stated, "In banks, it is difficult not only to become the CEO but also to become an executive."
By industry, the number of employees per one executive was lowest in securities (37.7 employees), trade (55.4 employees), petrochemicals (70.3 employees), insurance (72.8 employees), construction (88.5 employees), metal and steel (88.8 employees), and information and communication (99 employees). Industries such as distribution (259.7 employees), aviation and shipping (180.6 employees), shipbuilding and heavy industry (172.3 employees), automobile (142.6 employees), and electrical and electronics (138.7 employees) had higher competition for executive promotion.
The number of employees per one non-registered executive at Samsung Electronics was 80.7 in 2014 → 83.3 in 2015 → 89.8 in 2016 → 94 in 2017 → 97.4 in 2018, maintaining below 100. It surpassed 100 in 2019 with 100.1, then increased to 101.7 in 2020 → 106.2 in 2021 → 107 in 2022 → 107.7 this year. The probability of promotion to executive decreased from 1.24% in 2014 to 0.93% this year.
Oh Il-seon, director of the CXO Research Institute, said, "At the end of this year and early next year, the number of executive promotions in large companies is likely to decrease, and competition will be fiercer than ever. The rapid adoption of artificial intelligence (AI) in the financial sector is making it difficult to be promoted to executive regardless of business performance, and in the non-financial sector, companies are increasingly recruiting top-level young talent as executives, reducing promotion opportunities for long-term employees."
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