Executive Pay in US Ranks…… 41st?

Kris Dunn Uncategorized

Apparently, you may not be doing as well as you thought you were.  Executive pay ranks 41st in the world after being adjusted for cost of living, according to the Economist:

"Senior managers in the Middle East, Russia, and China are better paid than those working in theEconomist_chart  West, once their cost of living is taken into account, according to Hay Group, a consultancy. Its study compares managers’ disposable income in 51 countries, by calculating average salaries adjusted for taxes and living expenses.

On that basis, managers in Qatar, Saudi Arabia and the United Arab Emirates have twice the spending power of their counterparts in America, who rank only 41st in the survey. A shortage of talent in China and the Middle East has lifted wages. Managers in Eastern Europe have also enjoyed big gains in spending power. Executive pay in India has lagged behind that in other emerging economies."

Of course, most of us aren’t executives by the definition of the study (which I couldn’t locate by the way).  It would be interesting to see the same breakdown for middle managers, knowledge workers, and entry-level labor for the same countries as well. 

I suspect we’d see some interesting things there, especially if trended over the past 10 years.  I would expect to see relative pay competitiveness increasing at a healthy clip in India and China, where we’re already reading that wage inflation is causing multi-nationals to look to other emerging markets to keep margins high.

Kris Dunn

Kris Dunn is a Partner and CHRO at Kinetix, a national RPO firm for growth companies headquartered in Atlanta. He’s also the founder Fistful of Talent (founded in 2008) and The HR Capitalist (2007) – and has written over 70 feature columns at Workforce Management magazine. Prior to his investment at Kinetix, Kris served in HR leadership roles at DAXKO, Charter and Cingular. In his spare time, KD hits the road as a speaker and gives the world what it needs – pop culture references linked to Human Capital street smarts.