• US sales and marketing heads earn median annual total cash of $281,000, nearly six times that of US sales representatives with median total cash of $47,300.
• Sales managers earn the most in Switzerland; sales representatives earn the most in Germany.
• India places most emphasis on pay for performance, paying heads of sales and marketing 56% of total cash compensation as variable pay.

Annual total cash

According to the findings, US-based heads of sales and marketing receive $281,000 median annual total cash, followed by those in the UK who earn $235,700. Their counterparts in Mexico, Brazil and Canada also earn relatively high median annual total cash of $235,500, $222,900 and $215,400, respectively.

At the lower end of the spectrum, sales and marketing heads in Bulgaria receive $41,300, while those in Indonesia and India get $50,900 and $54,500, respectively.

Median annual total cash for sales managers - a pivotal role within successful sales organizations - ranges from $150,400 in Switzerland to $22,300 in Bulgaria. Sales managers in Germany and

Brazil are also paid relatively well by international standards, receiving $133,500 and $123,600, respectively. The UK is in 12th place at $102,200, while the US is ranked 24th for this position at $67,300.

Philippines and Indonesia ($24,900 and $26,100, respectively) are also at the lower end of the pay spectrum for the sales manager position.

"Cost of living factors between countries aside, some of these pay differences will dissipate over time as compensation strategies become more globally focused and companies assess the pay levels of their sales and marketing professionals in different geographies," said Steve Grossman, leader of Mercer Human Resource Consulting´s sales effectiveness business in the Americas. 

"Since heads of sales and marketing with global responsibility are rewarded for these additional responsibilities, it´s not surprising that this position in the US and UK - where many company headquarters are located - are paid more than in other parts of the world," he added.

Performance-related pay

The difference between base salary and annual total cash for a head of sales and marketing is greatest in India where as much as 56% of total cash is made up of variable pay, including commission and bonuses. Sales and marketing heads in Venezuela and Brazil also receive a high proportion of variable pay, at 48% and 36%, respectively.

At the other end of the spectrum, in Israel, Norway and the Czech Republic just 4%, 5% and 6%, respectively, of total cash is earned as variable pay, demonstrating little emphasis is placed on performance-related rewards. The UK and US heads of sales and marketing earn 24% and 22%, respectively, of total cash as variable pay.

"The use of performance-related pay for sales and marketing professionals varies significantly by industry, job level and job type," explained Mr. Grossman. "Pay programs are often unique to each company and compensation based on performance is only one aspect of a fine-tuned sales and marketing function. Culture, leadership and sales processes drive performance, not just pay programs."

Pay progression

Sales professionals in Brazil receive the greatest increase in pay as they progress in their career. While a sales representative earns $12,200 in median total cash, a head of sales and marketing earns 18 times more, or $222,900.

By contrast, while a German-based sales representative can expect his or her compensation to about double if he or she progresses to head of sales and marketing, with pay rising from $73,400 to $157,500, this is one of the smallest percentage increases among the countries Mercer surveyed.

US sales representatives who go on to be sales and marketing heads can expect their pay to be nearly six times higher on average, rising from $47,300 to $281,000.

These results are part of an international survey providing pay information for more than 30 sales and marketing positions in 39 countries. Copies of Mercer´s 2006 Managing Pay for Sales Professionals Report cost $840. More information is available at www.imercer.com or by calling 800 333 3070.

Notes :

*Median annual total cash refers to the total of annual base salary plus any guaranteed cash plus the actual annual short-term incentive amount. 

Pay figures are rounded to the nearest $100.

Mercer Human Resource Consulting is a global leader for HR and related financial advice and services, with more than 15,000 employees serving clients in more than 180 cities and 40 countries and territories worldwide. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York, Chicago, Pacific and London stock exchanges. For more information, visit mercerHR.com.

Cross-country comparisons of median annual total cash

Head of sales & marketing - highest paid

 Head of sales & marketing - lowest paid

Sales manager - highest paid

Sales manager - lowest paid

Sales representative - highest paid

Sales representative - lowest paid