bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

urlAlias

moreOnThisArticles

sponsorType

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

THE growth in average remuneration packages for 'fat cat' management on expatriate terms in Hong Kong has slowed to below the rate of inflation - but the average package is still worth $2.77 million a year, according to the latest annual survey by outplacement specialists Q3 Associates.

  Q3's survey of 223 leading companies in the territory found average packages of middle to top management rose 6.5 per cent over the past year, from an average of $2.6 million in 1995. This is considerably less than the 1994-1995 jump of 15.1 per cent over the previous year.

  The slowdown was attributed largely to falling housing allowances, reflecting a cooling off of rentals at the luxury end of the property market.

  There had also been a modest trimming in traditional expatriate perks, such as stock options, club memberships and company cars.

  'Signs of corporate belt-tightening were apparent,' Q3 president Paul Curley said.

  A relatively sluggish economy and a continuing drive by employers to recruit qualified local executives had created a more difficult expatriate jobs market, he said.

  The survey included all cash and non-cash perks, including base salary, performance bonus or profit share, cost-of-living allowances, foreign service premiums, housing, stock options or grants, club memberships, home leave passage or travel allowance and children's schooling.

  It did not include retirement and medical benefits.

  A cross section of 255 randomly picked executives participated in the survey. Most were Western. Bond traders and civil servants were excluded.

  Managing director-level expatriates averaged total packages worth about $3.6 million, while those in upper management averaged about $2.5 million.

  Most middle managers saw their overall rewards continue to rise, while senior colleagues saw their packages merely hold ground or even drop slightly. Overall, annual base salaries were found to average just over $1 million, or $91,670 per month.

  However, for top management, the average base salary was over $1.3 million a year, or $110,250 per month. The highest reported base salary was $300,000 per month.

  The biggest rewards were found in general management, followed by finance and accounting, sales and marketing.

  In broad terms, cash represented roughly half the total expatriate package, while housing accounted for 30 per cent.

  Company cars, club memberships, school fees, home leave and stock options boosted total package costs by an average $494,100 per year, or 17.8 per cent of the total.

  Some 25 per cent of expat management polled received stock options, with the projected value of these awards reaching $4.49 million. The average stock option value worked out at $486,600 and led the list of non-cash items. This was followed by company cars with an average worth of $238,800 a year and awarded to some 67 per cent of those polled.

  Some 58 per cent of participants enjoyed a company-paid club membership. The average value of education allowances for executives' children was found to be $104,500 a year.

  The survey showed British expats had narrowed the pay gap between themselves and their US counterparts.

  The average British expat package was $2.68 million in 1996, compared with $2.99 million for US expats.

 'Cost-cutting appeared to be taking its toll on US expatriates, as their average total package dropped by $21,600 to $2.99 million,' Mr Curley said.

  'Much of the decrease is explained by a reduction in the percentage of US expats who receive various perquisites, including company cars, travel allowances and stock options.' 



'Fat cat' expat packages fail to keep pace with inflation