What is the Average Account Executive Salary in the US?

If you’re working as an account executive (AE) or considering a career in this role, you’ve likely asked yourself, “What can I expect to earn?”

‍

Understanding your earning potential is essential, whether you’re starting or have years of experience. It helps with financial planning and ensures you're fairly compensated for your skills.

‍

On average, account executives in the U.S. earn between $76,000 and $275,000 per year. This range depends on various factors, from experience to industry and location. In this guide, we’ll delve into:

‍

• The typical salary structure of an AE.
• Factors that influence account executive salaries.
• Average AE Salaries by Industry, Experience Level, and Geographies
• Tips to negotiate a better compensation package.

‍

How Much Does an Account Executive Earn?

‍

Account executives earn vastly different salaries depending on a range of factors. The wide salary range for account executives reflects the diverse nature of the role. While entry-level AEs may start on the lower end of the spectrum, seasoned professionals in industries like tech or biotech can command six-figure salaries with hefty commissions.

‍

Median Salaries Across Sources:

‍

• Glassdoor: Median total compensation is $151,000/year.
• Built-In: Reports a median annual salary of $85,000/year.
• Salary.com: Lists the average AE salary as $105,673/year.

‍

An account executive salary structure involves a significant performance-based component as well, which might differ from company to company based on different incentivization policies.

‍

Account Executive Salary Structure

‍

The average account executive salary typically combines base salary and variable pay, forming their total on-target earnings (OTE). The ratio of the two is called the Pay Mix. The typical Pay Mix of an AE is 50:50 -

‍

• Base Salary: Fixed yearly income that gets paid as monthly salary regardless of performance, usually around 50% of OTE, providing financial stability irrespective of how sales performance has been for that period.
  ‍

• Variable Pay: Performance-driven earnings, including commissions and bonuses, make up the other 50% of OTE. This incentivizes hitting or exceeding sales targets. The rules and structure that are used to calculate the Variable Pay is often referred to as the Comp Plan. Understanding the comp plan is critical as it governs 50% of the compensation.

‍

Note: OTE amounts can only be earned by AEs upon 100% completion of all sales targets, otherwise the total compensation is just the fixed salary + earned commissions/bonuses.

‍

Factors Influencing Account Executive Salaries

‍

The salary of an Account Executive (AE) can vary significantly depending on multiple factors. Below, we expand on these factors and provide illustrative examples to demonstrate how they impact compensation.

‍

1. Experience Level

‍

Experience is one of the most significant drivers of an Account Executive's salary. As AEs progress through their careers, their skills in managing client relationships, hitting quotas, and driving revenue improve, leading to higher earnings.

‍

Illustration:

‍

• An entry-level AE with less than 1 year of experience at a small SaaS startup may earn a base salary of $60,000, with variable compensation bringing the total to around $80,000 annually.
  ‍
• A mid-level AE with 3–5 years of experience, working at a mid-sized tech company, may command a base salary of $90,000 and a total on-target earnings (OTE) of $140,000.
  ‍
• A senior AE with over 7 years of experience at a Fortune 500 tech firm could see a base salary of $130,000 and total compensation exceeding $300,000 (including bonuses and commissions).
  ‍

Example: At Salesforce, experienced Enterprise Account Executives routinely earn over $250,000 annually, driven by their ability to close multi-million dollar deals.

‍

2. Industry

‍

The industry in which an AE works plays a pivotal role in salary potential. High-revenue industries like technology, biotechnology, and finance tend to pay significantly more than sectors such as retail or government.

‍

Illustration:

‍

• Tech Industry: An AE working in Software as a Service (SaaS), especially in high-demand tools like CRM or cybersecurity, might earn an OTE of $250,000+.
  • Example: At HubSpot, AEs selling enterprise-tier marketing software can earn up to $220,000 annually.

• Healthcare/Biotech: Biotech companies reward AEs for securing long-term partnerships, with salaries ranging between $150,000 and $250,000.
  • Example: An AE working with Thermo Fisher Scientific earns higher commissions when closing large equipment and service contracts.

• Government/Public Administration: Compensation is comparatively lower, with total packages averaging $100,000–$140,000 due to budget constraints.

3. Location

‍

Geographic location directly affects AE salaries, often aligning with the cost of living in a specific area. Cities with thriving tech hubs or high living costs typically offer the most competitive pay.

‍

Illustration:

‍

• San Francisco, CA: AEs at tech companies like Google or Slack earn OTEs exceeding $300,000 to match the region's high living expenses.
  ‍
• New York City: Finance and tech AEs in NYC can command $250,000+ in total compensation.
  ‍
• Austin, TX: Known for its growing tech sector, Austin offers competitive pay, with AEs earning between $140,000 and $180,000 annually.
  ‍

Example: While an AE at a SaaS company in New York City might earn $150,000+, the same role in a smaller city like Indianapolis could offer a total compensation closer to $110,000, reflecting the alignment with market conditions.

‍

4. Company Size

‍

The size and revenue of a company often determine how much it can allocate for sales roles. Larger enterprises tend to offer higher salaries, better commissions, and lucrative perks.

‍

Illustration:

‍

• Small Startups: At an early-stage startup, an AE might earn a base salary of $65,000–$85,000, with total earnings dependent on small commissions and bonuses.
  ‍
• Mid-Sized Companies: A mid-sized SaaS company could offer a base salary of $90,000–$110,000, with OTE reaching $150,000–$180,000.
  ‍
• Enterprises: Global enterprises like Microsoft or Amazon Web Services (AWS) provide base salaries above $120,000 and total compensation exceeding $300,000, thanks to higher deal values and commissions.
  ‍

Example: A Senior AE at AWS closing enterprise cloud deals could earn a base salary of $140,000 with a variable pay structure pushing total earnings to $350,000+.

‍

5. Education & Certifications

‍

While sales roles prioritize skills and performance, specialized education and certifications can add credibility and increase an AE’s earning potential.

‍

Illustration:
‍

• A bachelor’s degree in business or marketing is often a baseline requirement.
  ‍
• Certifications like Strategic Account Management (SAMA) or Salesforce Sales Certifications can help AEs stand out and justify higher compensation.
  • Example: An AE with a Salesforce Certified Sales Professional credential can demand a 15% higher salary in SaaS roles.

An AE in a SaaS company like Salesloft with certifications in advanced sales methodologies (e.g., MEDDIC or SPIN Selling) could negotiate a higher base salary of $110,000+.

‍

6. Reporting Structure

‍

Account Executives who report directly to senior leadership, such as Chief Revenue Officers (CROs), tend to receive higher compensation due to increased responsibility and visibility.

‍

Illustration:
‍

• AEs reporting to Sales Managers may have annual earnings of $120,000–$150,000, with limited opportunities for additional incentives.
  ‍
• AEs reporting to C-level Executives often work on high-value enterprise deals, earning $250,000–$350,000+ annually due to larger incentive pools and bonuses.
  ‍

Example: At a company like Oracle, an AE reporting to the CRO for enterprise accounts would be responsible for million-dollar deals, leading to compensation packages exceeding $300,000.

‍

Summary Table: AE Salary Influences

‍

‍

By understanding these six key factors, Account Executives can better navigate their career path, identify growth opportunities, and negotiate salaries that reflect their skills and market value.

‍

Average Account Executive Salaries Across Experience Level, Location, and Industry

‍

Understanding the compensation landscape for Account Executives (AEs) is crucial for both professionals and employers. Below is a detailed breakdown of average AE salaries based on experience level, geographic location, and industry.

‍

Average Account Executive Salary by Experience Level

‍

‍

Average Account Executive Salary by Geographic Location

‍

‍

Average Account Executive Salary by Industry

‍

‍

Note: Additional compensation may include commissions, bonuses, and other incentives. Actual salaries can vary based on company size, specific role responsibilities, and individual performance. The figures given above are estimations and averages derived from a limited number of account executives who have revealed such information.

‍

By analyzing these tables, professionals and employers can gain insights into the compensation trends for Account Executives across different experience levels, locations, and industries.

‍

How to Negotiate a Higher AE Salary

‍

AE's should always keep in touch with market trends since the sales landscape is constantly changing, and companies are bringing in more incentives and better rewards programs. Below are some ways that AEs who feel they are underpaid can negotiate and demand a higher salary:

‍

1. Research the Market

‍

Know the benchmark salaries for your experience, industry, and location. A lot of information in this sector is available on websites such as Glassdoor, BuiltIn, and Salary.com. Using these salary comparison websites and industry reports to determine the typical salary range for an AE with your experience level and location can give you an idea of the fairness of your pay.

‍

Another important thing to do is to understand the company's financial health and typical compensation structure. Determine where you stand and what value you provide. If your base pay or incentives don't match your industry averages and your contributions, prepare to pitch your ask for higher pay.

‍

2. Highlight Your Achievements

‍

Now that you know that your ask is fair, prepare your best assets to justify the ask.

‍

• Quantify your accomplishments: List specific sales achievements, including exceeding targets, acquiring new clients, and generating significant revenue.
• Highlight your skills: Emphasize your expertise in sales techniques, relationship building, and industry knowledge, supported by specific examples.

3. Time it Right

‍

The timing of an interaction out of which you expect value must be right, just like how you handle sales conversations. Negotiate during performance reviews, after a big win, or when you receive a job offer. Moments of high impact, high visibility, and high contributions, can significantly boost your chances of getting your ask.

‍

4. Initiate the Negotiation

‍

Follow basic hygiene appropriate for salary discussions:

‍

• Wait for the offer: Let the employer present the initial offer before starting negotiations.
• Express appreciation: Thank the employer for the offer and state your enthusiasm for the position.

‍

Clearly articulate your expectations. Use confident, assertive language, such as: “Based on my contributions, I believe my compensation should reflect XYZ.”

‍

5. During the negotiation:

‍

Whether your salary expectations are met or not depends upon the company's policies and budgets, but here are some things you can do to ensure the best chances:

‍

• Be confident and assertive: Clearly articulate your value and the reasons you deserve the salary you are requesting.
• Focus on the bigger picture: Discuss not just base salary but also potential bonuses, commission structure, stock options, and other benefits.
• Be flexible: Be open to discussing alternative compensation structures if your initial salary request cannot be met.
• Consider Total Compensation: Look beyond base pay. Negotiate for bonuses, benefits, stock options, or flexible work arrangements.
• Know your bottom line: Establish a minimum acceptable salary you are willing to accept before initiating the discussion.
• Be prepared to walk away / say no: If the offer is significantly below your expectations, be ready to politely decline and explore other options. You will only be able to do this if you have a strong alternative (good standing in your current role or other comparable offers).

‍

Whether you get your dream account executive salary or not depends on a lot of factors, as stated earlier, but the important thing to prioritize, especially in the earlier years of your sales career, is that you should value learning as much as you value compensation. Account executive salary structures reward skills and high performance, things which time to acquire.

‍

Wrapping Up

‍

By understanding these salary benchmarks and factors, you can position yourself for financial growth in the competitive world of account executives. Account executive salary structures are predominantly fueled by performance-based commissions and incentives, and you can clearly see that at higher OTEs, the variable component of the total pay is much higher.

‍

Along with that, the variable component of an account executive salary is also something that grows faster than the growth rate of base pay. Sales is, overall, an extremely financially rewarding career for salespeople who can close deals, maintain happy customers, and repeat the process despite harsh market conditions or complex product offerings.

‍

FAQs

‍

What is an account executive's average salary?

Account executives earn an average total compensation between $76,000 and $275,000 annually, with variations based on factors like experience and location. For clarity, an account executive in the IT industry in Chicago can make $125,000 in base salary, and the same as additional cash compensation in variable pay in 2024.

‍

Which industries pay the most to Account Executives?

Tech and biotech are among the top-paying sectors in sales, offering AEs salaries as high as $275,000/year. Being an account executive also means hefty commission checks, bonuses, and other incentives, making it a very rewarding career.

‍

What is a territory account executive’s salary?

Territory AEs managing regional sales strategies earn $150,000–$250,000 annually. A territory account executive is responsible for the implementation and development of sales strategies for specific regions, a responsibility warranting their high pay scale.

‍

What does an Account Executive do?

Account executives are responsible for building and managing relationships with client customers. They are responsible for closing qualified leads to create new customers and serving as the point of contact for the customers in the future.

‍

What does an Account Executive job description look like?

An account executive's job description involves closing pre-qualified sales leads via customer demos, keeping in touch with accounts, facilitating communication between the client and the product and support teams, etc.

‍

What skills do I need for Account Executive positions?

Account executives need to be expert communicators and have up-to-date knowledge of the industry and consumer behavior. They also need analytical thinking, effective time management, and the ability to handle multiple customer interactions on the same day.

‍

What is an Enterprise Account Executive?

An enterprise account executive is an AE that specifically sells to large enterprises and handles complex product offerings, their customization and maintenance, and client relationships with these large enterprises. Building relationships is key to selling to enterprises and is often a time-consuming process.

‍

How high can an Account Executive salary go?

According to BuiltIn, account executive salary figures can reach as high as $350k, including the average additional cash compensation.

‍