EU bonus curbs will mean exodus by Westerners to Asia says recruiter
Job search firm DHR says Western executives are becoming increasingly interested in jobs in the Asian market as times at home get tougher
Curbs on bonuses and the economic slowdown in Europe will trigger an exodus of finance talent in Asia's direction in the coming year, international executive search firm DHR predicts.
Geoff Hoffmann, who was appointed DHR's chief executive in October, said the recruiter had already noticed a growing trend of European executives looking to work in Asia.
"The bonus cap in Europe will lead Western talents to consider taking up opportunities in Asia. As usual, the best talents go where there is more money," Hoffmann said on a trip to Hong Kong.
New rules to be introduced next year in the European Union will limit bankers' bonuses to no greater than their salary, the toughest bonus regime in the world. The same fate may be awaiting fund managers, as the European Parliament is reportedly pushing to widen the pay cap for bankers to the entire financial sector.
Switzerland, traditionally Europe's staunchest free-market bastion, is separately reining in executive pay after voters recently backed pay curbs in a referendum.
Even without the bonus issue, Hoffmann said, Western executives had of late become much more interested in gaining Asian work experience.
"Asia is the fastest-growing region in the world. Mainland China, for example, has annual economic growth at 7.5 per cent, higher than all mature Western markets," Hoffmann said.