No Pay Rise? No Problem.
Kipp doesn’t think the UAE pays too badly for higher level management—given the obscenely large bonuses and extravagant perks they often receive.
April 13, 2011 3:50 by shafeer
So earlier this morning, Kipp was flipping through Emirates 24|7 where we read this report on how CEO’s salaries are not expected to increase anytime soon. What was interesting about this particular article was that the paper linked the trend of a lack of pay rises to a lack of leadership in the Middle East. The logic being the inability of companies to hire and retain upper management is being hindered by their inability to increase salaries.
The article pointed at a study from Stanton Chase which showed that a large majority (67.7 per cent) of CEOs believe that Middle East economies are definitely facing a shortage in leadership talent, while an additional 30.1 per cent believes that there is indeed some level of leadership talent shortage. Only 2.2 per cent do not indentify this deficiency in the market.
CEOs not getting pay rises? Kipp’s not too convinced about that one but wait Konstantina Sakellariou, Partner, Marketing & Operations Director at Stanton Chase, told Emirates 24|7 “CEO salaries in the UAE are not increasing as a trend. A salary will increase based on personal and company’s performance. Additionally, specific expertise and highly specialised talent can also negotiate on remuneration. However, there is not a trend of increases in general.”
Well then, maybe Middle Eastern CEO’s are not getting pay rises soon, but is that affecting the region’s ability to retain higher level execs? Kipp is cynical. OK, we will concede maybe in the politically unstable regions convincing your CEO to stay in your office near Tahrir Square or Pearl Roundabout, might be quite a task. But in the UAE?
Ok may the top execs are not getting pay rises, but what about bonuses, commissions and other kinds of perks?
Do Business Class tickets, limo services and VIP access ring any bells?