S'pore's top execs the highest-paid in region: Report
Play
Bosses in Singapore earn bigger base salaries than their counterparts across the region, according to research out yesterday.
Pay here is around 10 per cent higher than in second-placed Hong Kong and three to four times higher than in lowest- ranked Vietnam.
The report gauges the relative competitiveness of base salaries across the region and the impact of currency movements on salaries in United States dollar terms.
It is designed to help companies with their global compensation strategy, and ensure compliance with local laws and practices.
Executives at the top of the hierarchy in Singapore have an average base pay of around US$586,000 a year, compared with $445,000 in Hong Kong.
The differential narrowed marginally compared with last year, noted the report compiled by global professional services company Towers Watson.
Base salaries in Singapore and Hong Kong overall edged up 3 per cent to 4 per cent compared with last year, except at top management level where they grew 6 per cent to 8 per cent.
While base salaries are higher here than in Hong Kong, "tax rates at those levels vary considerably and that has a bearing on take-home pay", said Sambhav Rakyan, data services practice leader for Asia-Pacific at Towers Watson.
"That said, we do see signs of regional headquarters moving from Singapore to other lower- cost locations, such as Malaysia and Indonesia, to reduce staffing costs, subject to availability of talent."
Executive pay in Hong Kong might overtake that in Singapore in the near future. "Hong Kong will very likely top the region for executive pay in the next few years if its currency continues to strengthen against the Singapore dollar," said Rakyan.
"With the US dollar rising and the Federal Reserve expected to raise interest rates this year, the dollar peg will see the Hong Kong dollar rise in tandem."
The report noted that for multinational corporations converting their staff costs back into US dollars for reporting purposes, the rise in the value of the greenback, particularly against the yen, Australian dollar, Singapore dollar and yuan, is significant.
"While there are other factors at play, such as benefits and the local market situations, which may limit the impact, for companies that report in US dollars, the weaker local currencies will clearly help," said Rakyan.
"It's also worth noting that some of the currency movement occurred after decisions were made and budgets set for salary reviews."
