Executive Status: What Are The Advantages And Disadvantages?

Many employees have the ambition to become an executive thanks to their diplomas, their skills and/or their professional experience... It is normal to want to evolve within one's company, but is the status of executive so enviable? We suggest you take stock of the advantages and disadvantages of this status.

What does it mean to be an executive?

If you have ambitions to become an executive, you should first know that there is no official definition of this status.

The executive status is a very vague notion, even in the eyes of French law. This status, generally defined in the collective agreements of companies, is associated with notions of responsibility, autonomy and supervision.

However, not all executives are necessarily managers in companies. It is possible to be a manager, but also a technical manager, a sales manager, a manager, a project manager, etc. This status depends on the position held, the qualifications, the workload and the fact that they supervise or manage other employees.

According to Article L 3111-2 of the Labor Code, executives are employees 'entrusted with responsibilities whose importance implies a great deal of independence in the organization of their schedule, who are empowered to make decisions largely autonomously and who receive a remuneration in the highest levels [...] practiced in their company or establishment.'

The Labor Code uses the term 'executives' only to designate those who can be electors at the Prud'hommes

What are the benefits?

The move from employee to executive status is accompanied by a significant improvement in salary and job status. Executive status implies a high level of responsibility and expertise. For this reason, it allows for better compensation than an employee.

According to APEC, the average salary for executives in 2021 will hover around €50,000 per year, although salaries vary widely depending on the size of the company, its geographic location and its sector of activity.

In addition, executives can enjoy various benefits such as a company car, cell phone, business bank card and company savings schemes.

Regarding the organization of working hours, employees with this status do not have fixed hours and can organize their schedule with more flexibility.

In practice, they no longer work 35 hours per week but are subject to a fixed day. Their working hours are counted as the number of days worked over a year, up to a limit of 218 working days over 12 months (annual day package according to the Labor Code).

Some companies even grant additional days off or rest days to executives in their collective agreement.

This status also provides a specific provident scheme offering better coverage in case of death.

In the event of dismissal, executives are compensated for longer. Above a certain salary, they contribute to APEC, which allows them to benefit from personalized support in case of unemployment.

What are the disadvantages?

As we mentioned above, executives' schedules are more flexible. But this is not necessarily an advantage!

This organization of work time without fixed hours often results in long workdays. The status of executive implies not counting hours and not receiving compensation for overtime worked.

According to an INSEE survey, executives work an average of 1,870 hours per year, compared to 1,640 hours for intermediate professions and 1,610 hours for employees and workers.

Because of their heavier workload and responsibilities, many executives do not take all their vacations or RTT. This is why some companies offer them a time savings account to put unused leave in.

Since the Agirc-Arrco merger in 2019, executives and non-executives contribute the same way for retirement. Previously, executives contributed more to receive a higher retirement pension. Today, only the amount of their salary is taken into account in the calculation of pension rights.