CEO Survey: Compensation Trends & Outlook For 2002
A total of 114 companies from various sectors, employee and turnover
sizes were included in the final analysis. Out of these companies,
60% are multi-nationals and the remaining 40% are local companies.
1. Salary Freeze
In 2001 less than 10% of the respondents froze their salaries. In
general, the scenario is going to be quite similar for 2002, though
less optimistic for the Management group as more companies are contemplating
a salary freeze for management positions.
For 2002 on average, about 10% of companies are planning to freeze
salary for the management group with more than 50% to 75% of the respondents
having no plans to freeze salaries. This leaves about 25% of companies
still undecided about salary freezes for 2002. The Executive and Non-Executive
staff will be half as likely as the management group to have their
salary frozen. This is similar to what we saw in 1998 and 1999 when
management was more likely to be hit in terms of salary reductions
and salary freezes.
In 2002 it appears there are more companies planning for a salary
freeze than those planning for a salary reduction. Given the latest
report from Bank Negara Malaysia on the contraction of the economy,
we would expect some companies to revisit their recent forecasts with
respect to the respective industry forecasts and their own forecasts
for their respective companies. Unless there is foreseeable improvement
in the economy, expect salary reductions to be implemented.
2. Salary Reduction
In 2001 practically no survey participant implemented a reduction
in salary for employees. The general scenario is going to be similar
for 2002. Note it is again the Management group where more companies
are uncertain of their plans for such a measure.
In 2002 no companies are planning to freeze salary for the Management
group. In 2002 the Non-Executive Staff appear more certain that they
will still be paid at least at current levels. We see 90% of respondents
confident that Non-Executives will not see a pay reduction. Correspondingly
10% of companies are not certain yet about Non-Executive pay next
year.
For the others, the split was 80%/20% as far as no cut/not sure are
concerned.
CEO Survey : Compensation Trends & Outlook for
2002
Salary Freeze and Reduction
Salary Projection
Salary and Bonuses Projection
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