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Brazilian executives are the best paid

posted Apr 15, 2012, 5:24 AM by Fernando Mello   [ updated Jun 30, 2012, 9:24 PM ]
March 28, 2012

Brazilian executives are the best paid
By Vivian Smith | Sao Paulo - Valor Econômico

Fréderic Ronflard, operations director of Robert Walters, says the increasing number of foreigners working in Brazil should help contain the rise in wages

The valuation of executive salaries Brazilian has established itself as a trend in the global market. Since last year, the remuneration of senior management professionals has surpassed some of the major markets like New York, Paris and Shanghai, and grows at an average of 10% per year. The conclusion is a global survey conducted by the multinational recruitment Robert Walters, who researched the average wage of 23 countries in areas such as marketing, sales, human resources and finance.

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The disparity between Brazil and other countries is higher in positions such as Chief Financial Officer (CFO) - the local government is one of the highest paid in the world, second only to those working in London, England. "Nevertheless, this work is more expensive for companies here than in England," says Frederic Ronflard, operations director at Robert Walters. A calculation made by the consultancy reveals that, including labor costs, the cost of a CFO position is $ 393,000 per year, equivalent to 40% more than the salary. In comparison, in the British capital the total cost is of $ 379,000, an increase of 22% on fees.

The Robert Walters survey showed, however, that it was not only in Brazil that remuneration has increased at double-digit range. In markets such as China, wage inflation even surpass 20% in some positions. "It is in frank expansion and economies that suffer from the lack of qualified people," says Ronflard. Brazil, China and Australia recorded the highest increases in salary compared to 2011. The vast majority of countries surveyed kept wages at the same level of last year. In the UK, there was an average drop of 5% in the earnings of executives.

In Brazil, inflation is concentrated at the top. "The gap is still large compared to entry levels," he explains. The war for talent, however, has meant that wages grow faster. "Professionals can earn increases of up to 50% when changing jobs," he explains.

The jump in earnings, however, should be viewed with concern. "In a time of crisis or stabilization, downsizing affects those with high wages that do not have performance," says Ronflard, who sees a slowdown in the earnings of high executives in the medium term.

He said the increasing number of foreigners working in Brazil should help to contain this process. "As multinationals are becoming more flexible about bringing people from other countries, the war for talent tends to decrease. This in turn has an impact on wages in general," he says. For the director of Robert Walters, the competition between local and expatriate workers is already installed. "The multinationals compare the cost of transferring a European executive to Brazil with the salary of a site. The cost-benefit ratio is often favorable to the foreigner," he says.

Ronflard explains that a major advantage for the company to bring a professional from the exterior is the stability. "Usually they come with family and decided to remain in employment for at least three years. Expatriation is also a way to retain the executive and combat turnover in positions of command."

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