• Companies in the US pay highest base salaries and annual total cash for finance and marketing directors; those in India pay the lowest
• Finance directors are generally paid most, but marketing directors earn more in Germany, Poland, and Hungary
• Highest base pay for HR directors found in US, while their counterparts in Germany receive highest annual total cash
• Multinational organizations rely on global pay data for sourcing talent and determining work locations

Senior executives in the US earn the highest salaries and annual total cash* globally, according to a survey by Mercer Human Resource Consulting. The research, which covers pay for finance, marketing, and HR directors in 14 countries worldwide, found that finance and marketing directors earn more than five times their counterparts in India, while HR directors earn over three times as much.

Steve Gross, Global Leader of Broad-based Rewards at Mercer, said, "Salaries and annual total cash are generally higher in the US because there is greater competition for talent and employers must pay more for top employees."

The research is part of Mercer´s 2006 Global Pay Summary which provides base salary and total cash compensation for 50 job positions** in 50 countries worldwide. The benchmark data is used by multinational organizations to set pay levels for employees globally.

"Global pay data helps multinational companies make decisions about sourcing employees and where to set up overseas operations. Factors such as retention costs, availability of skills, and productivity influence market rates and determine what an organization must pay to attract and retain talent in the respective locations," said Mr. Gross.

Finance directors

US-based finance directors are the highest paid, earning $250,000 on average, followed by those in Canada and the UK who receive around $186,400 and $180,300, respectively. Their counterparts in Hong Kong, Italy, and Germany also earn above-average base pay at $168,500, $159,000, and $154,400, respectively. 

Annual total cash for finance directors follows the same pattern as base pay. US-based finance directors are the highest paid, earning annual total cash of $324,600 on average, followed by those in Canada and the UK who receive approximately $262,700 and $236,600, respectively.

At the lower end of the spectrum, finance directors in Hungary and India receive less than average for this position - earning approximately $59,800 and $53,800, respectively. Average base pay for this role in Poland is $108,200. 

Mark Edelsten, Principal at Mercer, commented, "In many organizations, finance directors are the second highest paid individuals, receiving only slightly less than the CEO. The scope of their role has widened in recent years as new regulatory burdens and risk management responsibilities make them increasingly accountable for company governance."

Marketing directors

Base pay for marketing directors ranges between $203,100 in the US and $40,000 in India.  Marketing directors in the US are followed by those in Italy and the UK who are paid around $169,100 and $167,800, respectively. 

Marketing directors in the US also receive the most annual total cash, followed by those in the UK, Germany, and Italy. 

While Poland and Hungary remain at the bottom of the rankings, interestingly, pay for marketing directors in these countries and Germany is higher ($91,000, $110,600, and $165,000, respectively) than that for finance directors. 

"Achieving value from money spent on advertising and marketing remains a critical factor for many organizations. The high levels of pay for marketing directors in some countries reflect the fact that marketing and brand management are now considered key to enhancing company performance," said Mr. Edelsten.

Human resources directors

HR director is the lowest paid role of the three positions covered. The best paid HR directors are found in the US, the UK, and Germany where employees can earn $175,000, $161,900, and $160,500, respectively. Annual total cash for this position is highest in Germany at $227,500 followed by $219,000 in the US and $202,500 in the UK. 

Again, employees in this position working in Hungary and India earn significantly less than those in other countries - receiving around $57,100 and $47,900, respectively.

Mr. Gross said, "Bonuses increase pay significantly for many positions. Although HR directors in the US receive the highest salaries, those in Germany are paid most in terms of annual total cash. This reflects the value placed on HR directors in steering their companies and dealing with the various works councils."

Mercer´s Global Pay Summary is available in four volumes: Americas, Asia-Pacific, Eastern Europe and Middle East, and Western Europe. More details can be found at www.mercerHR.com/globalpaysummary.

Mercer Human Resource Consulting is the global leader for HR and related financial advice, products, and services, with more than 15,000 employees serving clients in over 190 cities and 41 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.

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

**The positions covered in the full Global Pay Summary reflect entry-level roles to management roles in 11 major job families, as follows: administration; corporate affairs; engineering; finance; general management; human resources; information technology; operations; research and development; sales and marketing; and supply and logistics.  

The pay figures above are rounded to the nearest $100.

Job descriptions

Finance director - formulates strategies, policies and procedures, including sales, costing, tax, asset, budget, credit and cash flow management.

Marketing director - leads the marketing department; directs marketing strategy on product positioning, market penetration, and pricing. 

Human resources director - is responsible for the strategic planning of the human resource function, including recruitment, training, organization development, compensation, and employee relations.

Cross-country comparisons of annual base pay and annual total cash 

Finance directors

Marketing directors

Human resources directors