Overview of C-level Salary Levels in the Ukrainian IT Market in 2023

Kateryna Osadchuk, CEO and co-owner of INDIGO–Tech Recruiters and .GIDNI Executive Search, conducted the fourth annual review of C-level salaries in IT.

We share the results and thank the Fint8 financial directors' service for their help in processing the data.

CEO INDIGO–Tech Recruiters Kateryna Osadchuk

This year's survey of top management compensation involved 146 respondents, including 78 men and 68 women. Observing the development dynamics of the sector, this salary review helps identify key factors influencing managers' incomes and pinpoint the main motivational factors shaping the labor market.

It is important to note that in Ukraine it is customary to talk about a monthly salary after taxes, so the figures you will see below are monthly salaries. In the Ukrainian IT sector, the tax paid on salaries is usually the individual entrepreneur tax, and it is 5%.

Analysis of top management compensation based on gender

Let's start our review traditionally with an analysis of the pay difference between women and men in C-level positions.

Fig. 1. Salary range for women and men in C-level positions.

Fig 2. The salary difference between women and men in C-level positions.

The data clearly shows a significant difference in salaries between men and women among top managers in the IT sector. According to the median, men earn 50% more than women, which in dollar terms amounts to $7500 versus $5000.

The salary disparity is substantial at all income levels, with an average percentage deviation of 62%. Our previous review from 2022 had very similar figures. This indicates gender inequality in the sector, where women are paid less for similar work. Such statistics require further analysis of the reasons and possible solutions to eliminate this inequality.

Fig. 3. Median salaries of women and men in C-level positions.

At the same time, it should be noted that the salaries of top managers can vary significantly depending on the specific company, its size, and market niche, as well as the position - you will be able to see this below and, in more detail, in our upcoming reviews of specific positions. For example, one of the highest-paid positions - CTO - is predominantly held by men in Ukraine, while the least paid, HRD, is held by women.

Analysis of compensation based on the age of top managers

Analyzing the salaries of top managers in IT by age groups, it is evident that the highest median income is observed in the age category from 35 to 39 years, where it amounts to $7250. This could indicate a career growth peak in this age range. Also, respondents of this age group were the most numerous, accounting for 31.5%. Nevertheless, it should be noted that the median does not always reflect the full picture, as it is known that the highest salaries in the 90th percentile are held by individuals in the 30-34 age group ($15000), which may indicate the presence of highly paid specialists or exceptional leaders in this category. Respondents in this age category make up 24%.

Fig. 4. Salary levels depending on age.

In the group over 45 years old, the median salary is slightly lower, at $6550, which may be associated with transitioning to less stressful roles or also due to age inequality that occurs in our country. Respondents of this age constitute 14%.

In the age categories from 30 to 34 and from 40 to 44 years old (24% of respondents), the median salary is the same at $6000, but again, the 90th percentile shows higher salaries among younger managers.

Interestingly, the lowest median income is observed among the youngest survey participants, aged 25 to 29 years, at $6250, likely reflecting a lower level of experience. And participants of this age are the least numerous - 6.5%.

The general trend is that income increases with age, reaches a peak at 35-39 years old, and then slightly decreases.

Such data can be important for career planning and understanding salary dynamics in the IT sector. They can also be useful for companies forming compensation policies to attract and retain top talent.

Analysis of compensation depending on the industry

Recent data from a survey of top management salaries in the IT sector indicate quite significant disparities depending on the industry specialization.

The blockchain industry emerges as the leader in income level in the 90th percentile, where salaries reach an impressive $18,800. However, you will see below that the overall median salary in this industry has decreased.

It's also worth noting the emergence of new market players, such as Defence Tech, where the median salary is $7,150, which may indicate a growing demand and value of specialists in this field.

In the AR/VR sector, average salaries have remained at a relatively modest level for several years - this year, the median is $4,500.

Fig. 5: Salary Levels by Industry in IT

The data reveal significant variations in median salaries among top IT managers across different industries. The industries with the highest median salaries include:

Consulting: $8700
MedTech: $8000
Education/E-Learning: $7250
AI/ML: $7000
Game Development: $7000
Digital: $7000
Supply Chain Solutions: $6525
Blockchain: $6500

These figures provide insights into how technological and industrial trends influence the compensation of IT leaders. They are also essential for forecasting labor market changes and developing talent attraction strategies by companies seeking competitive edges in a dynamic environment.

Yearly Comparison:

Salary Increases:

Consulting: Increased from $6000 to $8700
Education and E-Learning: Rose from $6500 to $7250
MedTech: Climbed from $6800 to $8000
AI/ML: Grew from $6300 to $7000
GameDev: Ascended from $6000 to $7000

Salary Decreases:

IoT/Hardware Development: Dropped from $9000 to $4750
Blockchain: Fell from $8500 to $6500
E-Commerce: Declined from $8860 to $7152
Digital: Decreased from $8619 to $6995

The salary trends within the IT industry show considerable variability by sector. Some areas exhibit growth, while others face reductions. These fluctuations likely reflect shifts in demand for specific skills, technological advancements, or broader economic conditions.

Analysis of compensation based on the age of the company

Based on data regarding salaries relative to the duration of companies' presence in the market, a clear trend is observed: a company's experience is closely related to the salary opportunities of its employees.

Fig. 6. Salary levels depending on the age of the company.

Companies that have been operational for 1 to 3 years show a median salary of $6500 with an average of $7318. This indicates that new companies, possibly startups, are trying to attract talent with competitive salaries.

For companies with a history of 3 to 5 years, the median salary is also $6500, but with a higher average of $7977, which may reflect growth and stabilization of revenues as the business develops.

Companies that have been in the market for 5 to 10 years pay a median salary of $7000, with a lower average of $6887, suggesting a more balanced salary range among employees.

For long-term market players with 10 to 20 years of history, the median salary is $6000 with an average of $7172, demonstrating stability and a solid market position.

However, companies that have been operational for over 20 years are particularly interesting. Their median salary is at $7500 with the highest average in the sample - $8204. Especially impressive is the 90th percentile, which reaches $20000, highlighting the high salaries that industry veterans are willing to pay for top-class specialists.

Fig. 7. Median Salaries Based on the Age of the Company

These data underscore that the experience and maturity of a company in the market can have a positive impact on the level of salaries, with a special premium for those working in businesses with a long history. However, it also shows that young companies are ready to compete for talent by offering attractive compensation conditions.

Analysis of Compensation Based on the Number of Company Employees

When analyzing salaries in the context of the number of company employees, we observe the following pattern:

Fig. 8. Salary Levels Depending on the Number of Company Employees

For companies with fewer than 20 employees, the median salary is $7000, with an average of $7539, indicating that small companies strive to attract talent with competitive salaries.

In firms with 21 to 80 employees, the median salary drops to $6000, with an average of $6806, suggesting slightly less salary attractiveness compared to very small companies.

Companies with 81 to 200 employees show an even lower median salary at $5250, with an average of $6777, demonstrating a further decrease in salary potential in larger organizations.

In organizations with 201 to 800 employees, the median salary returns to $7000, with an average of $7412, indicating increased payouts as the company grows.

Large companies with over 800 employees stand out, offering the highest median salary at $7750 and an impressive average of $9604. This underscores that large organizations have the resources to provide higher salaries, particularly at upper levels.

Fig. 9. Median Salaries Depending on the Number of Company Employees

These data indicate that there is a correlation between the size of a company and the salaries they offer. Small startups and very large companies seem more capable of paying higher salaries, while mid-sized organizations may offer slightly less competitive salaries.

Analysis of Compensation Based on the Location of Management

Salaries depending on the country where the company's management is located show that in the USA and the category of Other (unspecified countries), the median salaries are the same — $8000, but the averages are higher than the rest, indicating a greater dispersion of earnings. European companies offer a slightly lower median salary of $6025, while in Ukraine this figure is $6000, with the lowest average value. Overall, the region where the management is located significantly affects salary prospects.

Fig. 10. Salary Levels Depending on the Country of Management Location.

Fig. 11. Median Salaries Depending on the Country of Management Location.

Analysis of Compensation Based on the Number of Direct Reports

Analyzing salaries based on the number of direct reports, the following observations can be made:

More than 15 direct reports: Indicate the highest median salary of $10,000 and the largest average of $11,826, reflecting high responsibility and leadership of a large team.
From 11 to 15 direct reports: Here the median salary decreases to $6600 with an average of $6014, which is still relatively high but noticeably lower than managing a larger team.
From 8 to 10 direct reports: The median salary is $6000, with an average value of $7393, which may be associated with a mid-level management role.
From 4 to 7 direct reports: Shows a similar median salary of $6000, but a lower average of $6851, indicating a decrease in potential earnings with fewer subordinates.
From 0 to 3 direct reports: The median salary is $4500 with the lowest average of $5156, reflecting entry-level positions or roles without direct leadership.

Fig. 12. Salary Levels Depending on the Number of Direct Reports

These data confirm that a higher number of direct reports is usually associated with higher salaries, reflecting increased responsibility and managerial workload.

Fig. 13. Median Salaries Depending on the Number of Direct Reports

Analysis of Compensation Based on Company Revenue

The data show that salaries correlate with the annual revenue of the company.

Companies with revenue less than $1 million: Have a median salary of $6000, which is quite high for such revenue size, with an average of $6022.
For revenues between $1 million and $3 million: The median salary increases to $7000, with an average of $6796, showing an increase in salaries as revenue grows.
In the range of $3 million to $7 million: The median salary decreases back to $5000, with a slight increase in the average to $6874, which may indicate greater competition or other market factors.

Fig. 14. Salary Levels Depending on the Annual Revenue of the Company

Companies with revenue from $7 million to $10 million: Reach a median salary of $5500, with an average of $6650.
Revenues from $10 million to $20 million: Show a decrease in median salary to $5500 and an even lower average of $5806, which may be associated with certain structural or strategic changes in companies of this size.
Companies with revenue from $20 million to $50 million: Display an increase in median salary to $7000 and an increase in average to $7808.
Finally, companies with revenue over $50 million: Have the highest median salary of $11000 and a significantly higher average of $12905, indicating that large companies with substantial revenue can offer considerably higher salaries.

Fig. 15. Median Salaries Depending on the Annual Revenue of the Company

Overall, there is a certain correlation between the size of a company's revenue and the magnitude of salaries, although this relationship is not linear and may vary depending on the specific revenue size.

Analysis of Compensation Based on Company Type

The data show that average salaries vary depending on the type of company:

Fig. 15. Salary Levels Depending on the Type of Company

Product companies have the highest median salary at $7000 and the highest average of $8063, possibly reflecting higher profit margins and investments in talent.

Other companies show a median salary of $6000 with an average of $7106, which is lower than product companies but still competitive.

Outsourcing companies have the lowest median salary at $5500 and an average of $6248, which may indicate a more competitive market or pressure to reduce costs.

Analysis of Compensation Based on Role within the Company

Salary data by job title reveals the following:

CTO (Chief Technology Officer): Has the highest median salary among all listed positions at $10,000, with an average of $11,040, reflecting the importance of technological leadership in the company.
CEO (Chief Executive Officer): Has a median salary of $8400 with an average of $9000, slightly lower than the CTO but still high, as it corresponds to overall company management.
CHRO/HRD (Chief Human Resources Officer/Human Resources Director) and CFO (Chief Financial Officer): Show the lowest median salaries at $4000 and $4875, respectively, with averages of $4961 and $4706, indicating a lesser relative valuation of these roles in the pay hierarchy.
CMO (Chief Marketing Officer): Has a median salary of $7000 and a higher average of $7500, highlighting the importance of marketing and branding.
COO (Chief Operating Officer) and CPO (Chief Product Officer): Have the same median salary of $7000, but the average for a COO is higher ($7334 compared to $7627 for a CPO), reflecting the COO's broad range of responsibilities in operational activities.

Fig. 16. Salary Levels Depending on the Position

Overall, among executive positions, technology leaders (CTO) receive the highest compensation, while HR and financial directors have lower salary figures.

Fig. 17. Median Salaries Depending on the Position

Fig. 18. Median Salary Depending on the Level of Education

From the chart, it is evident that salary increases with the level of education:

Bachelor’s degree holders earn an average of $4000.
Those with a Master’s degree or PhD receive the same, averaging $6000.
Graduates of MBA programs receive the highest average salary at $8000.

Analysis of Bonuses and Compensation

From the chart concerning the type of bonuses, it is noted that:

40% of respondents reported receiving no bonuses at their positions.
34% have annual bonuses.
18% have quarterly bonuses.
16% receive monthly bonuses.
Only 5% indicated that they receive semi-annual bonuses.

Fig. 19. Types of Bonuses (Period)

These results indicate that annual and quarterly bonuses are the most common among survey participants, while regular bonuses (monthly or semi-annual) are less prevalent. A significant portion of employees do not receive additional rewards, which may indicate a fixed salary structure in their companies.

Fig. 20. KPIs That Determine Bonuses

The chart presents the KPIs (Key Performance Indicators) that influence bonuses:

45% of respondents stated that their bonuses depend on the company's profit.
32% have bonuses linked to the company's total revenue.
27% are tied to the performance of the departmental plan.
The same number (27%) of respondents do not receive any bonuses.
15% have bonuses dependent on the fulfillment of an individual plan.
Only 8% indicated that their bonuses depend on the company’s ROI (Return on Investment).

The chart clearly shows that the most common criteria for bonuses are the overall profit and revenue of the company, while ROI is a less significant factor.

Fig. 21. Additional Benefits in Compensation Packages

The chart presents additional perks in compensation packages:

Flexible scheduling is the most popular additional bonus, utilized by 66% of respondents.
Medical insurance is received by 46%.
Payment for additional education and compensation for sports activities are approximately equally popular at 41% and 24%, respectively.
Extra paid vacation and stock options are used by 21% and 18% of respondents, respectively.
Other benefits, such as insurance for children and/or spouses, "Other" benefits, and stock compensation, constitute 14%, 14%, and 12%, respectively.

Less common perks include discounts on company products and services (8%), additional long-term vacation (sabbatical) (5%), and rental payments (3%).

Conclusion: Flexible scheduling and medical insurance are the most common additional benefits, while other benefits, such as stock options and family insurance, are less common. Compensation for rental housing is the least frequent.

Analysis of Motivation and Demotivation Factors for Top Managers

Fig. 24. Motivation Factors for Top Managers

Data in the figure shows that the most important motivational factor for top managers is the level of salary, agreed upon by 64% of respondents. Freedom in decision-making and implementation is significant for 54%, and flexible scheduling is important for 47%. Company goals and mission, as well as a culture of trust and opportunities for professional growth, have an equal impact—45% for each aspect. The opportunity to do meaningful work and the value of products/services to customers are important for 42% and 40%, respectively.

On the other hand, less significant motivational factors include options (17%), medical insurance, and stock compensation (both 11%). Even less significant are additional education (8%), extra long-term vacation (sabbatical) (5%), housing rental, and compensation for sports activities (both 4%).

This highlights that for top managers, in addition to financial incentives, the internal culture of the company, opportunities to influence decisions, and flexibility in the work process are important.

Fig. 23. Demotivation Factors for Top Managers

Data reveal the significance of demotivation factors among top managers:

Insufficient salary is the main cause of demotivation for 37% of respondents, highlighting the importance of financial compensation.
Misalignment of personal goals and the company’s mission demotivates 31% of respondents, emphasizing the value of alignment between personal and corporate values.
Lack of decision-making freedom and insufficient professional growth, as well as a culture of distrust and incompetent leadership, each accounting for 25%, indicate the need for autonomy and effective leadership.
Dissatisfaction with work-life balance was noted by 24% of respondents.
Repeating the same tasks over many years and a desire for change are issues for 22% and 21% respectively.
Lack of schedule flexibility and a non-open, friendly corporate culture are also significant factors of demotivation.
Less impactful on motivation are aspects such as the absence of bonuses, stock options, or additional benefits such as medical insurance or rental payment coverage.

Overall, factors related to the internal culture of the company, personal growth, and adequate financial compensation are crucial in maintaining the motivation of top managers.

Additional Information

Fig. 24. Work Format of Top Managers

Work format:

The majority of respondents (49.3%) work in a hybrid format (both in the office and remotely).
47.2% work entirely remotely.
Only a small portion (3.5%) are engaged in consulting for multiple companies.

Fig. 25. Salary Currency of Top Managers

Salary currency:

The vast majority (78.8%) receive their salary in U.S. dollars.
14.4% are paid in euros.
6.8% receive their salary in Ukrainian hryvnias.

Fig. 26. Compensation Structure of Top Managers

Compensation structure:

Nearly half of the respondents (49.3%) receive only a fixed salary component.
37.7% receive a fixed salary plus a bonus.
Smaller percentages indicate the presence of options (6.8%) or shares (6.2%) in the compensation structure.

From these data, it can be concluded that a fixed salary remains the basis of compensation for most top managers, but a significant portion also receives additional bonuses. Hybrid and fully remote work modes have become customary, and most salaries are paid in U.S. dollars, which may reflect the international nature of the labor market or a desire to hedge against currency risks.

CONCLUSIONS

Summary of the Analysis of C-level Salaries in Ukraine's IT Industry for 2023-2024:

Gender Inequality: Remains a significant issue, with men continuing to earn 50% more than women—median salaries are $7500 for men versus $5000 for women, though the percentage difference varies by role.
Age Groups: Influence income levels, with the highest median salary of $7250 among the 35-39 age group, likely reflecting a career peak.
Industry Sectors: Have a substantial impact on salaries, with blockchain and defense technology leading in income levels, while AR/VR remains relatively lower.
Company Experience: Correlates with salaries, where newer companies offer competitive conditions, and well-established companies pay significantly higher salaries.
Company Size: Matters, with the largest median salary in companies with over 800 employees ($7750) and a high average salary ($9604), confirming the ability of large companies to offer more attractive rewards.
Management Location: Plays a role, with companies managed from the USA paying a median salary of $8000, higher than in Europe ($6025) and Ukraine ($6000).
Number of Direct Reports: Reflects salary levels, with the highest median salary of $10000 for managers with more than 15 subordinates.
Company Turnover: Also affects compensation levels, with the highest payments in companies with a turnover exceeding $50 million.
Company Type: Determines salary size, with the highest median salaries in product companies ($7000).
Position: This is a significant factor in salary formation, where CTOs receive the highest median salary ($10000), unlike CEOs ($8400) and other key executive roles.
Most Common Benefits: Include flexible scheduling (65%), medical insurance (47%), and payment for further education (46%).
Demotivating Factors: Include insufficient salary (37%), a culture of distrust, and insufficient freedom in decision-making (both 25%), emphasizing the importance of corporate culture and competent management for employee satisfaction.
Work Format and Payment Currency: Nearly equal numbers of managers work in a hybrid format (49.3%), and a significant majority receive their salary in dollars (78.8%), highlighting the globalization of the IT services market.
Payment Structure: Shows a preference for fixed payment (49.3%), indicating more conservative reward models in some sectors.

The labor market for C-level managers in Ukraine remains competitive, with clear factors influencing compensation and distinct expectations of top managers regarding work conditions. Companies need flexibility and adaptation to changing market conditions to attract and retain talented leaders.

Further detailed articles on compensation for specific positions are planned, revealing interesting facts such as the salary levels of CEOs or CTOs depending on the industry and type of company work, the country of establishment, the number of subordinates, as well as education, work experience, and other factors.

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Author: Kateryna Osadchuk, CEO of Indigo Tech Recruiters