Asian executives are taking home fatter pay-cheques than their peers in Europe and by 2013, they will go past the earnings of American top brass as well, says global staffing consultancy Mercer.
Executive pay in the Asia Pacific region is increasing across the region, especially in China, India, Indonesia, Vietnam, the Philippines and Malaysia.
On India, Mercer said that the country’s strong economic growth has led to greater workforce mobility, but added that salary increases have not matched performance.
It said, “Strong growth of around 9 per cent (in India) 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.”
In 2011, average executive salaries in Asia increased by an average of 7 per cent, while the vast majority of European organisations are increasing their executive salaries by an average of 2.5 per cent in 2011.
Salary hikes in the West are being restrained owing to poor economic growth and continued pay scrutiny in light of the current Euro-zone, banking and debt crisis, Mercer says in its Global Executive Pay Trends report.