In emerging economies such as Russia, Turkey, the Ukraine and Mexico, managers enjoy far higher buying power than those in the US, UK and most of western Europe, according to the report from management consultancy the Hay Group. Switzerland, Ireland and Germany are the only European countries to make it into the top 20 countries for management buying power, with the US at 24th and the UK down at 40th.
The survey was compiled using Hay Group's own, globally consistent data on wage levels at management level. Cost of living was then taken into account to reveal disposable income levels for 47 countries.
Managers in the oil-rich, tax free states of the UAE and Saudi Arabia take home the highest disposable incomes worldwide, with pay equating to buying power in excess of $220,000. In third place is Hong Kong, with buying power of $203,947.
Russia occupies the fourth position with buying power of $157,348, followed by Turkey ($154,762), Mexico ($152,283) and the Ukraine ($149,118). The average managers' buying power in the US is $104,905, and in the UK it is $86,367.
"Companies are operating in an increasingly open and competitive global economy, and emerging markets are offering managers higher disposable incomes than established countries - which is making these locations an attractive prospect management talent," said Iain Fitzpatrick, director of Reward Information Services for Hay Group North America. "This makes sobering reading for companies in western Europe and the US, who face not only local competition for managerial talent, but an increasing threat from buoyant new economies."
Hay Group World Pay Report
Review by: Nick Loney