Growth in Asia comes at a price
There seems no end to compensation inflation in the hottest parts of the Asian executive market. Whether it is mining executives in Australia or HR leaders in China, a combination of factors including market growth, economic inflation and acute shortages of experienced executives are still driving compensation ever upwards. India and China will both experience compensation inflation above 12% this year, and we can expect other parts of Asia to suffer similar, if less severe, rises. In China at least, there is a growing cadre of younger executives in their early 30s who should be the leaders of tomorrow, but in the meantime the delta between local and expat packages is being increasingly eroded which raises the question of how MNCs fulfil their localisation agenda whilst ensuring they have the best leaders.
In many instances, pay has risen at a disproportionate rate to performance and indeed to the substance and content that the executive brings; over time this will lead to a re-evaluation of the market worth of skills and experiences. More immediately, there is an increase in the numbers of the localised expat, that is, expats whose packages are normalising in line with local packages. The desire to stay in a buoyant market is a key driver for executives, and there are clear economic and business continuity benefits to the employer. There is also significant and growing interest from overseas executives in moving to Asia even without any expat package, although there is little desire to bring people into the region who have no prior on the ground experience or language skills. These numbers however, are not enough to slow down compensation inflation which will only be managed in any impactful way through the evolution of the executive pool and more sustainable levels of economic growth.
Asia Pacific Region HR Moves
- Michael McMullen has been appointed General Manager Human Resources for Dulux Group. McMullen was previously Group Manager, Human Resources at Agrium. He joined AWB in 2009 as General Manager, Group Human Resources. His earlier career was with BHP Billiton in various senior HR roles in Europe, Asia, USA and Australia. (Australia) )
- Peter Stickler has been appointed Executive Vice President of World Wide Human Resources at Flextronics. Stickler was previously Executive Vice President and Chief Human Resources Officer of LG Electronics. (Singapore)
- Josie Gosling has been appointed General Manager Talent and Organizational Development at Fosters Group. Gosling was previously People and Culture Director of NineMSN and earlier in human capital roles with Lion Nathan. (Australia)
- Yomo Yukari has been appointed Director of Human Resources at GlaxoSmithKline. Yukari was formerly HR Director at Microsoft having joined the company in 2006. Previously she worked at GE for more than a decade. (Japan)
Hospital Authority Hong Kong
- Derrick Kit-Sing Au has been promoted as Head of Human Resources for Hospital Authority. Au was previously Deputy Head of Human Resources. He is also currently the Hospital Chief Executive of Kowloon Hospital and Hong Kong Eye Hospital, as well as Service Director of Allied Health, Geriatric and Community Care of Kowloon Central Cluster. (Hong Kong)
- Jane Song has been appointed Executive Director of HR in China for Lenovo Group. Song was previously Regional HR Director for Thermal Equipment & Services. (Beijing)
- Chika Sato has been appointed Regional HR Director at Microsoft Japan. Prior to joining Microsoft, Sato worked at GE for over a decade and recently served as HR Leader at GE Capital Japan and Leader of Organization & HR development at GE Commercial Finance Asia. (Japan)
MTR Corporation Limited
- Morris Siu-Wa Cheung will succeed William Fu-Keung Chan in his position as Human Resources Director and a Member of the Executive Directorate due to retirement. Cheung will be designated as Human Resources Director from October 2011, and officially effective July 2012. He was previously Chief of Operations Engineering within the firm. (Hong Kong)
- Tadashi Ishihara has been appointed HR Director at NXP Semiconductor. Ishihara was previously with SAP Japan, where he held the role of HR Business Partner for Field Service. (Japan)
- Tracey Gavegan has been appointed Group Managing Director, Human Resources at Telstra. Gavegan joined Telstra in 2006 and has been acting head of the company’s HR business unit since March 2011. Before joining Telstra, Gavegan was Director of Human Resources for the wine and spirits business, Maxxium ANZ, working across Australia and Asia. Prior to this, Tracey held several lead human resources roles across a variety of business sectors from pharmaceuticals to consumer goods in blue chip organisations. (Australia)
- Didon Tang has been appointed HR Director for Volvo Cars Distribution of China. Tang was formerly HR Director at Fiat Group Automobiles China. (Beijing)
Russell Reynolds Associates is a leading executive search and assessment firm. Our presence in Asia has been established for more than 30 years, and we have nine offices: Beijing, Shanghai, Hong Kong, Tokyo, New Delhi, Mumbai, Singapore, Sydney and Melbourne.
Our Global Human Resources Officers Practice conducts more than 400 assignments every year and we pride ourselves on the insight and knowledge we bring to our clients.
For further information on our Human Resources Officers Practice or other corporate functional capability in Asia, please contact:
About Russell Reynolds Associates
Leadership for a Changing World. In today's global business environment, success is driven by the talent, vision and leadership capabilities of senior executives.
Russell Reynolds Associates is a leading global executive search and assessment firm with more than 300 consultants based in 39 offices worldwide. Our consultants work closely with public and private organizations to identify, assess and recruit senior executives and board members to drive long-term growth and success. We value teamwork, serving our clients with a collaborative approach that spans our international network of sector and functional experts.
Our in-depth knowledge of major industries and our clients’ specific business challenges, combined with our understanding of who and what make an effective leader, ensure that our clients secure the best leadership teams for the ongoing success of their businesses. For more information, please visit us at www.russellreynolds.com.