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Hong Kong's chief executives are the highest paid in Asia with an average annual package of US$635,186, according to a survey by consultancy firm Towers Perrin.

Singapore's chief executives were second in Asia with US$621,871 and Japan came third with US$545,233.

On a global basis the United States had the highest paid chief executives with an average US$1.4 million with Hong Kong ranked eighth and Singapore ninth.

Australian chief executives were paid more than their Asian counterparts with US$646,316.

China, where the study concentrated on Shanghai, had the lowest paid chief executives on an average US$93,393 per year.

The remuneration figures include bonuses, stock options and pension contributions.

Hong Kong has moved with the global trend of using stock options as incentives for executives to improve performance and commitment.

'The most drastic change in Hong Kong has been the increase in both long-term and short-term incentives among CEOs and other executives,' said Towers Perrin consultant Trey Davis.

'There are many companies very interested in stock option plans and I really do not see this trend slowing at all.'

According to the survey 47 per cent of executives in Hong Kong have stock-option plans. But Singapore has been more aggressive than Hong Kong in introducing incentive plans for its executives, according to Mr Davis.

The survey found in 19 out of the 26 countries the majority of companies introduced long-term incentives for executives compared with 10 countries in 1996.

More companies were also starting to provide stock option schemes to middle management as well as to the senior executives, the survey found.

The Asian regional financial crisis, which began in July 1997, boosted regional growth in such schemes by focusing companies' attention on becoming more efficient through rewarding executives for strong performance.

As the economies recovered, the difficulties for employers retaining skilled staff also encouraged incentive schemes.

'It is becoming harder to recruit and retain very talented individuals at all levels of the organisation but stock and option plans are one way you can really differentiate your business,' said Mr Davis.

Chinese companies have shifted towards performance-related pay for their employees, according to the survey, with multinational companies using stock options as long-term incentives.

The companies surveyed had more than US$500 million in annual revenue.

Graphic: ceo18gbz



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