Mercer survey data (Source data; This report) on Directors pay across countries between US and UK has the following findings.
a)Base pay comparison:
US base pay- £99,900
UK base pay- £ 90700
German base pay- £ 88,400
Peers in Asia pacific still seem to have the cost advantage over their counterparts. The average pay for Director in India was quoted £29,346.
b) Survey data also reveals that HR directors are paid less than their marketing and finance counterparts.
c) The average base pay for the finance directors in different markets are:
US - £130,800
UK - £106,000
Germany- £85,400
Another report on Executive compensation has the following findings. (Source data: Report)
Base Salary
- Average base salary levels in the majority of European markets still fall within 20% of the European average. Base salaries in the Nordic countries are generally lower than comparable jobs in other countries.
- Base salary levels are highest in Ireland (with salaries 10-20% above the European norm) and the UK (with salaries 10-25% above the European norm).
- US salary levels are about 20% below the European standards.
- Median base salary increase in Europe of 3.5% for executives who stayed in the same job during the survey year. A quarter of executives had salary increases of more - than 8.1% but one in four had no increase.
- Highest paying sectors across Europe are banking/finance and service companies when comparisons are made on the basis of job size. Transportation and industrial companies tend to pay below-average executive salaries.
Annual incentives:
Europe-wide, median bonus payments ranged form 40% of base salary for the smaller executive jobs to 100% of base salary for chief executives of major companies.
- Plan, design and operation vary greatly, thought some form of profit measure is usually the main driver. Cash flow measures are used by 20% of companies.
- German companies paid the highest bonuses in Europe as a percentage of base salary, commonly 100% to 200% of base salary.
- Bonus levels in the Nordic countries are significantly lower than in other countries, with typical bonuses paid in the range of 15% to 40% of base salary.
- Bonus levels paid in Europe were generally below US levels as a percentage of salary. The exception was Germany, where bonuses were significantly higher than in the U.S.
- Bonus levels were higher than in 2005 for the lowest executive levels, moving form 35% to 40% of base salary. Actual bonuses paid remained stable at the higher job levels in 2006 with respect to our 2005 study in most European countries.
Total cash
- Total cash levels in Europe are similar to US levels for the bigger executive jobs. For the smaller executive jobs, European market levels are above the US market by about 15%.
- Within Europe there are wide variations; the highest levels are in Germany (up to 90% above the European average) and, with the exception of the highest job levels, in France and the UK. The lower levels are in Nordic countries.
Long-term incentives
- Stock options are still the most common plan type in most countries. Across, Europe 55% of the companies use stock options.
- Performance conditions for exercise apply to 67% of stock option plans; this is an increase form 56% in 2005. Performance conditions for the grant of options are used in 26% of companies.
- On average, the difference between 75th percentile of expected value of long-term incentive and the 25th percentile is almost three times for comparable jobs.
- European long-term incentive levels are below US, especially for chief executives. As a percentage of their base salaries, US chief executives would typically receive grants three times the size of those awarded to their European counterparts.
Total Direct compensation
Total direct compensation in the US is above typical European levels - up to 50% higher for the largest jobs - as a result of the much higher long-term incentive awards.
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