Thoughts and Observations on Turkish Economy and financial markets. Turkiye Ekonomisi, Borsa, Dolar, Altin, Faiz, Teknik Analiz, Grafik, Hisse Senetleri...

Wednesday, September 17, 2008

High Executive Salaries

Turkish executives take home one of the highest real pay levels worldwide, surpassing their American counterparts among many others, according to an annual report by the Hay Group, a global management consulting firm.

Turkey ranks fifth on the list of managers' spending power, according to the World Pay Report. When compared, a Turkish executive brings home $1.90 to every $1 of an American executive.
“The ranking appears striking at first glance, however, the survey results in Turkey within the last six to seven years have revealed this uptrend,” said Ayşın Argüden, of Hay Group Turkey. “The research is based on 621 professionals working in 132 medium and large scale private sector firms in Turkey.”

The World Pay Report examines the average salary of a management-level employee – Hay Reference Level 20. It is roughly equivalent to a head of department or function in a large multinational company. The report applies the relevant tax rate for that salary and subtracts a generic “cost of living” measure to reach a ranking of the relative spending power of managers in 51 countries around the world.

Managers in the fast-growth economies of the Middle East, Asia, and Eastern Europe tend to have the highest spending capacity, according to the report. The demand for management talent far outstrips supply in these markets, meaning companies need to compete with developed economies for the talent they need. At the same time, the cost of living is determined more by local factors, keeping the relative value of management salaries high. (more)

Maybe I should consider moving back to Turkey!! Considering that US is printing money faster than Zimbabwe, it may not be a bad move.