This Year's Top 100 Companies Executive Promotion Rate '0.84%'... "More Competitive in Year-End Personnel Changes"

CXO Research Institute Analyzes Executive Promotion Rates in Top 100 Companies
One Executive per 119 Employees
Only Samsung Electronics Among the Big 4 Groups Raises the Bar

It was found that among executives of the top 100 domestic companies by sales, there is approximately one executive for every 119 employees. The executive promotion rate is 0.84%. Among the major affiliates of the four largest groups (Samsung, SK, Hyundai Motor, LG), only Samsung Electronics raised the threshold for executive promotion compared to the previous year. As a trend of workforce reduction is expected due to poor performance, it is analyzed that competition for promotions in next year's executive appointments may become more intense.

Employees are arriving at Samsung Electronics Seocho Building in Seoul. Photo by Jo Yong-jun

According to the results of the "2024 Analysis of Executive Promotion Possibility for Employees of the Top 100 Companies" released on the 7th by Korea CXO Research, a corporate analysis specialist, the total number of employees in the top 100 companies is 849,406. This is a 0.3% increase from the same period last year (846,824). The number of non-registered executives increased by 66 (0.9%) to 7,135 from 7,069 last year. The growth rate of executives was faster than that of employees. The ratio of executives to total employees is 1 to 119.

The number of employees per executive in the top 100 companies by year changed as follows: 105.2 in 2011 → 106.8 in 2015 → 124.5 in 2018 → 128.3 in 2019 → 128.8 in 2020 → 131.7 in 2021 → 120.9 in 2022 → 119.8 in 2023 → 119 in 2024. This year is similar to last year.

The executive promotion rate for employees of the top 100 companies has been on the rise since 2022 but still remains a "narrow gate" for employees. It fell from 0.95% in 2011 to 0.76% in 2021, then rose slightly to 0.82% in 2022, 0.83% last year, and 0.84% this year.

By company, the executive promotion rate showed significant differences. Hyundai Corporation had only 14.9 employees per executive. Its executive promotion rate was 6.71%, the highest among the top 100 companies. POSCO Holdings also had one executive per 15.8 employees, with an executive promotion rate of 6.33%.

By industry, the financial sector had low executive promotion rates. Industrial Bank of Korea had one executive per 908.7 employees, with an executive promotion rate of 0.11%. Non-listed banks also had rates in the 0.1?0.2% range: Shinhan Bank 0.15% (one executive per 688 employees), Woori Bank 0.17% (one per 592.4 employees), Hana Bank 0.22% (one per 444.6 employees), and Kookmin Bank 0.24% (one per 415.1 employees).

Retail had 0.35% (one executive per 287.4 employees), energy 0.58% (one per 171.3 employees), shipbuilding and heavy industry 0.61% (one per 165.2 employees), transportation 0.67% (one per 149.3 employees), automotive 0.74% (one per 135.3 employees), and electrical and electronics 0.75% (one per 133.6 employees), all below the average executive promotion rate.

Securities had 2.45% (one executive per 40.3 employees), trade 1.62% (one per 61.8 employees), petrochemicals 1.40% (one per 71.3 employees), insurance 1.40% (one per 71.4 employees), and metal and steel 1.07% (one per 93.7 employees), all exceeding a 1% executive promotion rate.

Looking at the number of employees per executive in major affiliates of the four largest groups, Samsung Electronics had 110.3 employees per executive this year (107.7 last year), LG Electronics 116.1 (117.5), Hyundai Motor 143 (151.8), and SK Hynix 163.9 (164.4). Among the major four companies, only Samsung Electronics saw a narrower scope for executive promotions this year.

However, the executive promotion rates of major affiliates of the four largest groups, including Samsung Electronics, are higher than the average of the top 100 companies (0.84%).

Oh Il-seon, director of CXO Research Institute, said, "In the executive appointments to be made from the end of this year to early next year, there is a high possibility that the number of executive positions will be reduced, narrowing the range of promotions. It is expected that fierce invisible competition will take place for new executive positions."