This is an important question for anyone considering a career as an account executive. Account executives are responsible for managing client accounts and relationships for a company. They work to retain existing clients and attract new ones. As client-facing roles, account executives need strong communication and relationship-building skills. They must also have a solid understanding of their company’s products, services and capabilities to effectively match them to client needs. The potential to earn a high income is often a motivator for pursuing this career path. However, account executive salaries can vary significantly based on factors like education, experience, industry, company size and geographic location. By examining average account executive salaries, top paying industries and cities, and income potential over time, we can better understand the earnings potential in this role.
What is an Account Executive?
An account executive is responsible for managing accounts and relationships between clients and businesses. Their primary duties include:
- Managing a portfolio of assigned accounts
- Retaining existing clients and generating new business
- Serving as the main point of contact between clients and the company
- Developing growth strategies to expand business from existing clients
- Preparing proposals and sales presentations
- Collaborating with internal team members to meet client objectives
- Ensuring high levels of client satisfaction
- Negotiating contracts and agreements with clients
- Forecasting sales targets and tracking account performance
Account executives handle the day-to-day management of client relationships. They work to match company offerings to client needs, while building strong working relationships. Excellent communication, presentation and negotiation skills are vital in this client-facing role. Account executives may specialize by industry, product/service line or geographical territory. Titles can also vary, such as National Account Manager or Sales Account Executive. As account management professionals focused on sales and revenue growth, their income potential is strongly connected to their performance.
Account Executive Salaries
According to the U.S. Bureau of Labor Statistics (BLS), the median annual salary for account executives and sales representatives across all industries and experience levels is $60,570 per year, or $29.14 per hour, as of May 2020. However, salaries can vary significantly based on:
- Industry
- Location
- Employer type and size
- Years of experience
- Performance/sales volume
Some industries and sales roles have much higher earning potential. For example, pharmaceutical and medical sales reps earn a median annual income of $90,020. According to Payscale, the average base salary for an Account Executive specifically ranges from approximately $45,000 to $85,000 per year. Commission structures also allow for uncapped earning potential based on sales volume and performance. Higher performing Account Executives can potentially earn annual total compensation of six figures and above.
Industry Impact on Earnings
There is significant variation in account executive salaries by industry. Industries with complex, highly regulated or technical products and services tend to command the highest pay. For example:
Industry | Average Base Salary |
---|---|
Pharmaceuticals | $98,000 |
Medical Devices | $85,000 |
Information Technology | $83,000 |
Financial Services | $80,000 |
Business Services | $72,000 |
Advertising & Media | $68,000 |
Industries like pharmaceuticals and medical devices have very high earning potential for account executives and sales reps. Technical knowledge, regulated environments, long sales cycles and high product values enable six figure incomes. At advertising and media agencies and other mainstream industries, the earning potential is often lower on average.
Location Impacts on Income
Salaries also vary significantly based on geographical location. Account executives working in major metropolitan areas typically earn higher salaries. This is likely driven by the presence of large corporations and industries that can support higher pay. Here are examples of average account executive salaries by U.S. city:
City | Average Base Salary |
---|---|
New York, NY | $77,000 |
Chicago, IL | $72,000 |
Los Angeles, CA | $70,000 |
Houston, TX | $67,000 |
Phoenix, AZ | $66,000 |
Atlanta, GA | $65,000 |
Major cities, especially coastal metros like New York and Los Angeles, provide higher salaries for account executives compared to inland cities like Phoenix. Geographic location makes a significant difference in average base pay.
Experience Levels and Earning Potential
Salaries also tend to correlate with years of professional experience. Entry-level account coordinators and associates may earn $40,000 to $50,000 in base salary. With 3-5 years experience as an account executive, bases can reach $60,000 – $75,000. At senior and executive levels, base salaries commonly exceed $100,000 – $150,000.
Sales volume, commissions and performance bonuses provide additional earnings upside. While all experience levels have uncapped commission potential, senior account executives at mature career stages tend to have higher income potential. They have the largest client portfolios and the skills to land and expand high value accounts. This enables six-figure total compensation and above.
Experience Level | Average Base Salary | Total Compensation Potential |
---|---|---|
Account Coordinator (0-2 years) | $40,000 – $50,000 | $50,000 – $75,000 |
Account Executive (3-5 years) | $60,000 – $75,000 | $75,000 – $125,000 |
Senior Account Executive (5+ years) | $85,000 – $125,000 | $125,000+ |
Higher experience levels, bigger client portfolios and proven sales abilities enable account executives to earn over $100,000 in total compensation. Those consistently landing and growing major accounts can potentially earn over $200,000.
Career Advancement and Income Growth
Account executives have clear paths to advance their careers and salaries over time. With strong performance, they may progress to roles like:
- National Account Manager – manages major accounts at the national level
- Global Account Manager – manages largest international accounts
- Vice President of Sales – leads a sales team and division
- Chief Revenue Officer – oversees company sales strategy
As account executives advance to oversight and leadership roles, their salaries continue to increase:
Role | Average Salary |
---|---|
National Account Manager | $130,000 |
Global Account Manager | $150,000 |
Vice President of Sales | $175,000 |
Chief Revenue Officer | $225,000 |
Proven sales leadership abilities, management of high value accounts and executive positions enable advanced career stages to earn over $200,000 on average. There is significant upside for advancement and salary growth over a long-term account executive career.
The Impact of Company Size on Salaries
Larger companies tend to offer higher account executive salaries than small businesses. Large enterprises have billion-dollar revenue streams that allow bigger investments in sales talent. The largest global companies can afford to pay account executives very competitively:
Company Size | Average Salary |
---|---|
Large enterprises (over 1,000 employees) | $85,000 |
Mid-size companies (200 – 1,000 employees) | $68,000 |
Small businesses (under 200 employees) | $55,000 |
While small businesses may not be able to match the salaries at Fortune 500 corporations, they can still present good income potential, especially if commission percentages are higher. Candidates should look at the overall compensation structure and growth opportunities, not just base pay.
The Big Ticket to Higher Earnings
More than salary or title, the accounts a rep manages have the biggest impact on their earning power. Landing and growing a few major accounts can greatly increase commissions, bonuses and overall compensation. Even at startups and smaller companies, managing large accounts presents huge income potential.
Account executives who strategically gain responsibility for national or global enterprise accounts can earn over $300,000 in total annual compensation. Consistently managing and expanding the highest value accounts is the surest path to significant income.
Key Factors That Increase Account Executive Salaries
Salaries vary widely for account executives based on these key factors:
- Industry – Complex industries like IT and healthcare pay the most
- Location – Major metropolitan hubs provide higher salaries
- Experience level – Senior reps earn the highest bases and total comp
- Company size – Large enterprises offer more compensation upside
- Accounts managed – Landing big enterprise accounts boosts commissions
Candidates should carefully weigh these factors as they evaluate job offers and next career moves.
Conclusion
Account executive salaries offer strong earnings potential. While average salaries are around $60,000, top performers can reach over $100,000, especially in lucrative industries, cities and enterprise sales roles. Significantly higher pay is possible by managing national and global accounts at mature career stages. Candidates should focus on high-value industries and accounts with the most income upside when considering account executive roles. With consistency and performance, six-figure incomes are achievable for many in this career.