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China Daily Website

Executives in Asia top the global pay league

Updated: 2013-10-19 00:41
By MICHAEL BARRIS in New York ( China Daily)

Executives in the Asia-Pacific region are earning the highest base salaries in the world, driven partly by employers in China sweetening pay packages to retain talent amid a severe management shortage, a survey has found.

The base salary for senior executives in the region during the year ended Sept 30 was $243,642, according to the recently released results.

The survey of 778 executives from around the world was carried out by the Association of Executive Search Consultants, an executive-consultant industry group.

In contrast, executives in the Americas had an annual base salary of $229,261, while the figure for bosses in the emerging markets of Europe, the Middle East and Africa, or EMEA, was $212,066.

In the Asia-Pacific region, most executives made between $201,000 and $250,000, the survey showed.

The majority of executives in the Americas were in the same pay range, while the highest percentage of executives in EMEA made between $151,000 and $200,000.

"Where there is a talent shortage, compensation would certainly be leveraged to attract the right talent," Joe Chappell, director of global marketing for the New York-based association, told China Daily.

Besides offering higher pay amid the management shortage, Chappell said rapid economic growth and inflation could also drive up salaries in the Asia-Pacific region.

China is grappling with the world's worst shortage of managers, mainly owing to a dearth of professionals with Mandarin and English-language skills who are familiar with local and business culture and who are willing to relocate at short notice, the association said.

The inability of China's business-education system to turn out high-quality managers fast enough to meet demand also contributes to the management shortage, the Financial Times reported in April.

Chappell said in August, "There isn't enough talent that fits the bill locally and not enough international talent equipped with the knowledge to take on the local Chinese market."

The shortage is not expected to ease any time soon, he said.

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