Indian honchos get peanuts against counterparts abroad

New Delhi, March 29 | Updated: Mar 30 2006, 06:34am hrs
Indian marketing and finance directors earn less than five times the salary of their global peers while Indian HR directors earn less than three times the salary of their global counterparts. These are the findings of a survey conducted by Mercer Human Resource Consulting in 14 countries.

US-based finance directors are the highest paid, earning $250,000 on an average. Those from Canada and the UK receive around $186,400 and $180,300 respectively and are second and third in the ranking. Their counterparts in Hong Kong, Italy and Germany also earn above-average base pay, at $168,500, $159,000 and $154,400 respectively.

The comparative figure for Indian directors is $53,774. The annual total cash for finance directors follows the same pattern. US-based finance directors are the highest paid, earning annual total cash of $324,600 on an average, followed by those in Canada and the UK who receive approximately $262,700 and $236,600, respectively. Here too the Indian executives only get $63,806 on an average.

Mercers Steve Gross, attributes high US pay rates to greater competition for talent and employers in the US market. Factors like retention costs, availability of skills and productivity influence market rates and determine what an organization must pay to attract and retain talent in the respective locations, he says.

US based marketing directors get $203,100 on an average while those in India get around $40,000. Marketing directors from Italy and the UK follow US marketing directors at around $169,100 and $167,800 respectively. Marketing directors in the US also receive the most annual total cash, followed by those in the UK, Germany, and Italy.

Though, Hungary and Poland feature at the bottom of the rankings, interestingly the pay for marketing directors in these countries and Germany is higher ($91,000, $110,600 and $165,000 respectively) than that of finance directors. The HR director is the lowest paid of the three.

In India, HR directors get more than marketing directors. Again, the best paid HR directors are found in the US, UK and Germany where they can earn $175,000, $161,900 and $160,500 respectively. Annual total cash for this position is highest in Germany, at $227,500, followed by $219,000 in the US and $202,500 in the UK.