The role of independent non-executive or outside board directors is getting tougher throughout Asia because of a confluence of several notable trends, a change that can warrant higher pay.
Recently, Willis Towers Watson consultants discussed important executive compensation issues, including corporate governance and executive and board pay, with several leading institutional investors in Asia, with some surprising viewpoints.
Regular compensation risk assessments have been common in many Western countries for several years now, and many companies have found that the exercises have been helpful in identifying and reducing pay- and behavior-related risks and in streamlining incentive design and governance processes. The trend is catching on in Asia.
Strong economic growth and an accompanying demand for top talent are driving up the base salaries of top executives in Asia, the Asia Pacific (APAC) section of Willis Towers Watson's 2016/2017 Global 50 Remuneration Planning Report indicates.
In the late 1980’s and early 1990’s in the United States — in the early stages of a technology stock market boom — there was a perception that CEO pay was rising too rapidly and was out of control. In the public backlash that followed, legislation was passed requiring companies to publicly disclose the details of executive pay in their annual reports.
Singapore remains the place to be for the highest base salaries at the executive level in the Asia Pacific region, with pay levels around 10% higher than the next highest market, Hong Kong. These findings from our 2014/2015 Global 50 Remuneration Planning Report shed light on the relative competitiveness of base salaries across the region and the impact of currency movements on base salaries in U.S. dollar terms.
Sambhav Rakyan and Trey Davis
While U.S. executives remain the world’s most highly paid, evolving talent markets and continuing globalization have begun to narrow the differences in executive rewards practices between many countries around the world. Competing for top cadre talent today requires an understanding of ongoing global trends in rewards, plus close attention to the remaining differences — some quite significant — in how key rewards programs are structured from country to country.
James Matthews and David Seitz
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