The salaries of CPOs (HR Directors) have increased to the point where they are now often on parity with other leaders in the business. Human Resources is no longer looked upon as the poor cousin, instead, the organisation is placing even greater value on HR’s contribution to delivering on the business strategy.
At the same time, recent legislation changes concerning pay, working conditions and other conditions of employment has made HR critical in ensuring that an organisation is compliant. They have been responsible for managing some of the most complex transformational challenges, like fielding the transition to flexible working and managing the adoption of AI in the workplace. As a consequence of this, the CPO role is increasingly seen as an integral part of the C-suite. Their awareness of the culture and organisational structure of their companies is essential now that workers are more conscious of best working practices, demanding transparency and accountability from senior management. Most C-suite bonuses are also becoming more dependent on human capital metrics, drawing attention to the critical value of HR initiatives and thus to the importance of attracting and retaining top HR talent.
State of play: Reward catches up but geographical differences can still be significant
A CPO in a mid-market company with a headcount of between 1,000 and 4,000 and a typical annual revenue of £500m to £1.5Bn would earn an average base salary of £200,000 to £240,000 per annum in the UK. At the same size and scope of company in the US, a CPO would earn an average base salary of $375,000 (approx. £280,000) per annum*. Average base salaries for CPOs vary across the EU, but typically fall in the range of €150,000 and €200,000 per annum (approx. £130,500 and £174,000), placing them lower than both their UK and US equivalents.
CPOs in the UK and US can expect a typical bonus of 30% to 40% of their average base salary, bonuses for CPOs in the EU are usually between 25% to 35%, and can be substantially lower in some countries.
As well as this, approximately two thirds of mid-market US organisations offer Long-Term Incentive Plans (LTIPs) to their CPO, compared to around 50% of similar-sized UK organisations, where LTIP rewards can be up to 75% of a CPO’s annual base salary in value. LTIPs are less established across the EU and can be difficult to initiate due to the stricter guidelines around pay and pay equity in countries like France and Germany.
Whilst CEO & C-suite pay in the UK is not capped, corporate cultural attitudes towards transparency have created an environment where executive compensation needs to be justifiable to shareholders and employees alike. EU companies also face this push towards transparency, enhanced by the upcoming implementation of the new EU Pay Transparency Directive.
However, differences in cost of living and in mandatory benefits must be factored in. Western Union and Eurostat note that the US has a slightly higher cost of living than the UK. Living costs in the EU are lower than the US, often substantially, and broadly equitable to or lower than living costs in the UK depending on individual country.
Companies in the UK and the EU also provide more mandatory employment benefits than US counterparts. The European Parliament’s legislation provides certain benefits to all EU workers, but the regulations of individual countries are often more stringent. For example, German employers must provide public health insurance, pension insurance, unemployment insurance, long-term care insurance, accident insurance, maternity and parental leave, and paid sick leave. Compare this to the US, where employers are only federally mandated to provide Social Security contributions, Medicare contributions, federal unemployment insurance, state unemployment insurance, and workers’ compensation**.
Additionally, although a year is standard for federal roles, the US has no limitation on length of probationary trial period. The standard in the UK is between three and six months across all sectors, with a fixed maximum of 24 months. In the EU, the maximum averages between zero and eight months, granting some workers full employment rights from earlier in their employment.
What this means for attracting and retaining senior HR talent in the UK and EU
The relatively stable benefits and lower cost of living in the UK and EU contrasts the higher variability and risk, and significantly higher reward, available in the US. However, attraction and retention of HR leaders is not all about the money, it is predicated to an extent on the preferences and values of the talent pool.
The UK may soon establish a comfortable middleground here.
According to the 2025 Work Remastered study by United Culture, eight in 10 UK office workers considered employer reputation ‘crucial’ when making employment decisions. Also, a recent analysis of CPO career paths found that the UK accounts for a disproportionately high share of global CPO appointments relative to the size of its economy, suggesting that the UK is attracting global talent rather than losing it.
The UK’s strong hiring market, proliferation of companies with great international reputations, and the possibility that some UK companies are looking to emulate the US rewards model will contribute to much fiercer competition between the UK and the US for talented CPOs.
*all figures correct as of June 2026.
**regulated at state level, so exemptions are variable.
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