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back to index backASIAtalk May,  2007


India shines but executives still paid less

If you have been envious about the pay-slips of senior executives in finance, marketing and human resource in India, then think again. According to a research released by Mercer, finance and marketing directors in the US earn more than five times their counterparts in India, while HR directors earn more than four times as much.

The 15-country analysis by Mercer Human Resource Consulting is drawn from their survey ‘The 2007 Global Pay Summary’ done earlier this year. It provides the base salary and total cash compensation for 50 job positions in 50 countries worldwide. More than 2,300 organisations responded to the survey. The benchmark data is used by MNCs to set pay levels for employees globally.

The study showed US-based finance directors are the highest paid, earning a base salary of $248,700 on an average. Their counterparts in the UK and Canada followed close by with around $201,500 and $190,900, respectively. While salaries in Germany, Hong Kong and Brazil averaged between $170,000 to $161,200.

In comparison, finance directors in Hungary and India received less than half of the 15-country average earning around $60,000 and $55,700, respectively. Even China offers better salaries at $75,200. Among the other Asian countries, finance directors in South Korea are highest earners, followed by Hong Kong Singapore and Japan, with base pays at $179,000, $164,300, $137,600 and $131,600.

Says Steve Gross, Global Leader of Broad-based Rewards at Mercer, Compensation has long been driven by factors like historic pay levels, size of economy and competition for talent. As firms become more globally mobile and can shift some jobs to lower-cost locations, these new considerations will have a big impact on pay levels among countries.”

Marketing directors come second in the salary ladder. The base pay ranges between $205,000 in US to $42,800 in India. Again, Indians are at the lowest end of the spectrum. Incidentally, marketing directors in directors in US also receive the maximum annual total cash, followed by those in UK, Germany and Brazil.

As for the recruiters themselves or the HR directors, they get lowest remuneration among the three. The best-paid HR director in US gets around $190,000 compared to the $248,700 salary of a finance director. Of course, Indian HR directors are the lowest paid with an annual base salary of $55,790.

‘‘Finance directors frequently are the second highest paid individuals in an organisation, receiving only slightly less than the CEO,’’ says David Conroy, UK Leader of Reward at Mercer.

The HR directors too manage to earn higher than average salaries where their role is more strategic and business focused. For example, where HR directors are driving through change programmes for their employer and taking a leadership role in M&A activity, they definitely earn more.

However, bonuses increase pay significantly at many levels. It’s most obvious in Brazil. HR directors here get the seventh highest base salary among the countries surveyed, but in terms of cash compensation, they are the second highest. This reflects the value placed on HR directors among Brazilian companies.

Source: The Times of India - GAI


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ASIAtalk

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