The Increase Rate of Executives in Large Corporations Was Higher Than That of Employees

Decrease in Employee-to-Executive Ratio per Executive

The number of executives at listed subsidiaries of the top 30 conglomerates increased over the past year. Since the number of employees did not increase at the same rate as executives, the ratio of employees per executive decreased. The group with the highest executive growth rate compared to employee growth was Shinsegae.

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[Photo by Sangga Information Research Institute]

On the 1st, Leaders Index, a corporate analysis research institute, revealed these results after analyzing the status of executives and employees in the annual and semi-annual reports of 215 listed companies from the top 30 groups last year and this year.

The total number of executives (including inside directors and unregistered executives) at the 215 companies increased by 4.5%, from 8,207 as of the end of June last year to 8,579 as of the end of June this year. The number of employees (excluding unregistered executives, regular employees) increased by 2.8%, from 906,504 to 931,504 during the same period. Because the executive growth rate was higher than that of employees, the ratio of employees per executive decreased from 110.5 to 108.6, a drop of 1.9.

The number of female executives in the top 30 groups increased by 17.6%, from 460 to 541, which was higher than the male executive growth rate of 3.8%. However, the ratio of female executives to female employees was 0.2%, while the ratio of male executives to male employees was 1.2%, 1 percentage point higher.

Shinsegae Shows High Executive Growth Rate... Doosan Sees Executive Decline and Employee Increase

Among the top 30 groups, 22 saw an increase in the number of executives. Among these, seven groups?Shinsegae, Young Poong, Mirae Asset, SM, Kumho Asiana, Harim, and GS?had an increase in executives but a decrease in employees.

Shinsegae had the highest executive growth rate compared to employee growth over the past year. The number of employees at Shinsegae Group’s seven listed subsidiaries decreased by 2.8%, from 34,364 to 33,416. Meanwhile, the number of executives increased by 21.6%, from 111 to 135.

Specifically, at Emart, while the number of employees decreased by 4.0%, executives increased by 15.0%. At Shinsegae International, employees decreased by 13.6%, whereas executives increased by 14.3%.

Conversely, six groups?Doosan, Hyosung, Jungheung Construction, DL, Hanjin, and LS?saw a decrease in executives but an increase in employees. Hanjin Group’s employees increased by 719 (3.1%) while executives decreased by 6 (-5.0%). Doosan Group’s employees increased by 243 (2.7%) while executives decreased by 2 (-1.3%).

The group with the highest number of employees per executive was Shinsegae Group (247.5). Following were HDC (229.0), POSCO (224.3), KT (213.2), and Hanjin Group (209.8). On the other hand, Mirae Asset Group (23.8) had the lowest number of employees per executive.

This content was produced with the assistance of AI translation services.