News: Asian executives earn more than western peers

Compensation & Benefits

Asian executives earn more than western peers

According to Mercer, a global staffing consultancy firm, increased pay restraint in Western Europe and North America, combined with economic growth in emerging markets, is pushing pay for executives in Asia. Executive pay in Asia has already surpassed European levels and is predicted to surpass the US by 2013. Executive pay in the Asia Pacific region is increasing across the region, especially in China, India, Indonesia, Vietnam, the Philippines and Malaysia. The contributing factors include continued strong GDP growth, accelerating inflation and, crucially, a scarcity of executive talent. On a cautious note, Dr. Hans Kothuis, Mercer’s Asia Pacific leader for Rewards, Human Capital, says, “Companies in the Asia should review their remuneration policies to ensure that they can maintain sustainability and capitalize on rapid changes in technology, trade and financial conditions, as their share of the world economy increases.”

According to Mercer, a global staffing consultancy firm, increased pay restraint in Western Europe and North America, combined with economic growth in emerging markets, is pushing pay for executives in Asia. Executive pay in Asia has already surpassed European levels and is predicted to surpass the US by 2013. Executive pay in the Asia Pacific region is increasing across the region, especially in China, India, Indonesia, Vietnam, the Philippines and Malaysia. The contributing factors include continued strong GDP growth, accelerating inflation and, crucially, a scarcity of executive talent. On a cautious note, Dr. Hans Kothuis, Mercer’s Asia Pacific leader for Rewards, Human Capital, says, “Companies in the Asia should review their remuneration policies to ensure that they can maintain sustainability and capitalize on rapid changes in technology, trade and financial conditions, as their share of the world economy increases.”

With specific reference to India, Mercer says, “In India, strong growth of around 9% has increased staff mobility and pay. As increases in pay have not always been matched by improved performance, greater scrutiny by boards and compensation committees on fair use of remuneration benchmarks, increased use of performance criteria and more clawback provisions, is likely.”

 

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Topics: Compensation & Benefits, #Updates, #TotalRewards

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