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How British salaries compare
Page 23
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• Business executives in the UK got a rise of 10-12 per cent last year and a similar one the year before, according to the latest international salaries and fringe benefits survey by Associated Industrial Consultants Ltd. Executives in some large British companies with an international outlook, especially in the food and drink, tobacco and chemical industries, have now just about reached the salary levels of their counterparts in France and Germany. But other UK industries have further to go, and everyone needs to travel a long way to catch up with US and Canada.
The 300-page survey covers 30,000 executives of 1,500 companies in the UK, France, West Germany, Spain, Australia, South Africa, Canada and USA.
The survey provides information on the incidence of taxation, cost of living and fringe benefits for each country. The UK continues for the second year to show at 9 per cent the highest rise in the cost of living of any country bar Japan and the Netherlands, excluding Brazil which ballooned by 21 per cent last year.
Although executive salaries in the UK have kept up reasonably well with increased living costs, the report shows that the degree to which wages increased 'up to October 1970 exceeded the increase in living costs by only 9 per cent—less than in any country other than New Zealand or US. But by February, 1971, wage awards had increased the net gain to 11.2 per cent—which is beginning to be comparable with other European countries.
With regard to tax, the UK executive compares badly with France, America and South Africa, though his colleagues in Scandinavia and New Zealand fare even worse.
AIC Salary Research Unit director, David Young, who compiled the report, said last week: -The expansion of international trade is inevitable and accelerating. More and more UK companies will have to realize that in this context their senior executives will become part of an international elite and will require payment accordingly.
"In particular, with Britain likely to enter the EEC this year, they should be making comparisons now to ensure that British executives abroad are provided with adequate status in financial terms. This is necessary in most countries in order to achieve `le standing'—without which the right doors are not easily opened."
No direct comparisons of transport salaries with other functions are possible. The nearest designations which are of interest are chief engineers and marketing managers.
In the UK, chief engineers of firms with 250-499 employees earn on average £3079 a year—in France the equivalent job rates £6492 pa. (Salaries of chief engineers in larger firms are appreciably higher.) Marketing managers in the UK earn from £4000 to over £7000 pa, depending on company size. In France a marketing manager—marketing sometimes includes distribution----earns on average from £5127 to £6194 pa for a firm of less than 500 employees.
The salary survey is available to interested companies from AIC Salary Research Unit, Old Court House, Old Court Place, London W8, price £30.