Executive Salary Growth in Ukrainian IT Segment 2022 Explained

The current state of executive salary growth directly reflects the state of the Ukrainian IT segment. 2021 was the year of significant growth for the Ukrainian IT segment. The talent demand and competition for talent had facilitated incredible salary growth and revitalized the segment’s talent pool.

Recently, Talando conducted executive search C-level labor market research. This article breaks down what was going on with the salaries.

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What Drives Ukrainian IT Executive Salary Growth?

Like every other field in the Ukrainian IT segment, C-level salaries are growing. There are several reasons for it:

• Talent demand is a significant factor in executive salary growth. As a result, many companies need experienced top managers who can elevate the company to a new level and accomplish strategic business goals. 
• It is important to note that while there are more than enough people in the talent pool, there are not that many candidates who fit all the requirements and can meet hefty management expectations. 
• Employee Retention is another influential factor, but it works differently than regular tech talent. For instance, companies keep a close look at executive’s job satisfaction and tend to put in an effort to retain them if they see value in their current work. However, if the executives are deemed expendable – they will not attempt to keep them.
• The responsibilities and operational scope for executives are expanding. As a result, the salaries follow suit as both candidates and companies acknowledge that a more extensive scope of work requires higher compensation. These days, C-level specialists are expected to do more different things, function on several levels, and get more results. 

Overall, the 2020-2021 period saw a 35-40% salary increase for executive positions in the Ukrainian IT segment. 

• Gambling and gaming niches showcase the highest C-level salaries in the segment because of the niche profitability. While there are enough candidates who match the requirements, not every candidate is interested in these niches. 
• Cybersecurity, blockchain, and embedded software niches had salary level growth throughout 2021. However, the talent pool for these niches is limited. The current talent pool has few specialists with high-profile expertise in these domains which can realistically handle executive duties.

Non-tech C-level Salaries

Salary levels for non-technical executive positions (like CEO, COO, CFO, CMO, CPO, etc.) haven’t changed as drastically as tech-oriented executive positions. 

• The salaries revolve around $4500 and $8200 figures. 
• In some cases, the VP of Engineering can get a $10000 salary while the CEO salary is at the $5000-6000 level (excluding bonuses). 

Non-tech executive salary levels for outsourcing and product companies remain more or less at the same level as in 2020. However, in some cases, mainly when the company competes for talent – the salary might be higher than average, but it is not a common occurrence.

Unlike salaries – the bonus system and other compensation greatly expanded during 2021. Bonuses can get such specialists up to 20-30% of their annual income. 

In addition to performance bonuses (monthly, quarterly, annual), non-tech executives can get stock options, company shares, sign-on bonuses, and other goodies. 

Why do Non-Tech C-level Salaries Grow Slow?

• One of the reasons why salary growth wasn’t as significant as for tech positions is because the talent competition for CEO or COO is not as fierce as for CTOs or CIOs. 
• The other reason is that the talent pool is not as dynamic as the tech-oriented C-level. These candidates don’t change jobs frequently, and they don’t go all guns blazing when looking for a job. 
• Then there is limited understanding of the market situation in the segment and its long-term consequences. 

The thing is – high-profile C-level specialists maintain the company’s competitiveness in the market niche. Their expertise fuels competitive advantages, and their decision-making drives companies forward. 

Because of that, undervalued executives of today are likely to look for better job opportunities tomorrow. Given their experience and track record – it won’t be a problem to find a job, but it would be a challenge for their current employer to retain them.

What’s interesting is that while the non-tech executive salaries haven’t changed that much – position requirements and responsibilities have significantly expanded. 

The expectations go as far as companies expect finding high-profile executives whose expertise will be game-changing from the get-go. And for a reasonable salary.

At the same time, the position requirements had significantly expanded as companies expect to find high-profile executives with all sorts of experience that will be game-changing for the company from the get-go.

Tech C-level Salaries

Things look very differently for tech-oriented C-level. Salaries for such positions as CTO, CDO, CISO, CNO, CIO, CSO continue to grow. 

The companies see a lot of value in tech-oriented executives as they are instrumental in developing the company’s products that maintain and perpetuate their standing on the market. Because of that, they are ready to pay high salaries for specialists.

In 2021 Tech C-level salary growth was at 20%.

• Such niches as gambling and online gaming actively search for tech C-level and can pay higher than average salaries. But given the reputation of the niches, attracting candidates is challenging.
• The cybersecurity niche is growing due to ever-present threats and the need to keep business assets safe. As such, the demand for cybersecurity specialists is increasing at all levels. In addition, cybersecurity as a service experiences growth, and more companies sell such services.
• Blockchain and cryptocurrency projects are currently trending. Rapid growth allows these companies to pay high salaries. Due to the competitiveness of the niche, there is a need for new technological solutions. However, the talent pool for blockchain-related C-level is limited. Currently, the best option is to home-grow talent into CTO and other executive roles.

• Embedded software niches are on the rise. Companies in this field raise significant investments and require qualified talent to spearhead their efforts. While they can pay high salaries, the talent pool for this talent level is limited, and it is more efficient to develop current talent into leadership roles.

What drives the demand for tech C-level?

• Talent demand for tech C-level continues to grow year over year. Companies need high-profile specialists with tech expertise and managerial experience, and they are ready to pay big money to attain them.
• Competition for talent also plays a role. CTO in active job search can get 2-3 job concurrent job offers, and it would 

• Employee retention for tech C-level can go for the distance as such specialists are strategically crucial for the company. As a result, counteroffers can go up to 50-60% salary raise to retain talent.

• Foreign companies enter the Ukrainian market without intermediaries and hire talent directly. 

What’s next?

Executive salaries will continue to grow during 2022 due to talent demand and competition for talent. 

• Salaries for non-tech C-level will gradually increase, probably within the 10% range. However, salaries in such niches as gambling and blockchain will remain higher than average.
• Salary levels for tech C-level will keep the growth trend throughout 2022. Depending on the position the growth will be somewhere around 15% and 30%.

However, the real question is what is going to happen with the Ukrainian IT segment’s C-level talent pool. That’s what we are going to talk about in our next article.