ASIAN EXECUTIVES EARN HIGHER PAY THAN WESTERN COUNTERPARTS
More and more Asian executives are earning higher salaries than their Western peers. In 2010, average executive salaries in Asia were higher than those in Europe. It is expected that more Asian executive salaries will surpass those of American executives by 2013.
Salary growth in Asia is also outpacing salary growth in Europe and America. In 2011, Asian executive salaries increased by 7%. In Europe and America, executive pay only increased 2-3%.
However, these higher salaries in Asia have not always been matched by increased work performance.
There are multiple reasons for the higher salary growth in Asia. Western executive pay has been restricted by poor economic growth due to the banking and debt crises. Asian countries, such as China, India, and Malaysia, have had strong economic growth and rising inflation. In addition, there is a shortage of strong executive talent in these countries. Tough competition for top executive talent in local and multinational companies is driving salary to levels that may be unsustainable.
For example, Chinese HR managers are in short supply. Before China opened up, under the old system, there was no need for HR managers since the government alone dictated where and what employees were paid. Today, top westernized local HR managers with ten plus years of experience are making about $200,000.