If executives were pushed to describe the proverbial glass as being half full, it's because they're still gainfully employed. However, when it comes to compensation, the glass is invariably half empty - and could stay that way for a while.
For most of the region, salaries and compensation packages for marketing communications executives are on the downtrend. It's hardly unexpected as Asia's export-driven economies continue to shiver from the global recessionary chill.
The surprise though is in China. Seemingly immune to the global slump, the mainland confounded economists, delivering eight per cent growth last year. It's also forecast more of the same this year.
As such, salaries in China's primary cities of Guangzhou, Shanghai and Beijing have escaped the cutbacks instituted by the marketing communications community in other key markets.
According to figures provided by executive recruitment group TMP Worldwide, salaries stayed flat in China in the last 12 months. TMP expects little change this year. (chart on p17)
"Everybody is looking at China as a good career move, mainly because of a lack of job opportunities in their own markets but also because China is the exciting place to be," said San Lee, TMP Worldwide divisional manager, sales and marketing, North Asia.
China's robust appetite for marketing communications talent is in stark contrast to the rest of the world, where demand has shrunk.
Hong Kong in particular has been hit hard by major brands relocating their China headquarters further north, mainly Shanghai. Agencies have had to follow suit, exacerbating the unemployment rate in Hong Kong's marcoms sector.
McCann-Erickson Greater China chief executive officer, T.H. Peng, believes that pay packets in China will rise this year, but at a moderate rate.
"There will be salary increases for local staff in China, but the ready supply of expatriates will prevent executives at managerial level from getting huge increases," Peng explains.
But Hong Kong's continuing economic slump is likely to close the pay disparity gap between the city and China, note industry executives.
For example, a director of client services in Hong Kong can expect between US$100,000 and $120,000 per year, down from $110,000 to $135,000 at the beginning of last year. The going rate for a similar position in China remained unchanged over the past year at $90,000 and up.
The gap between marketers in Hong Kong and China is also shrinking.
In one case, however, there appears to be a surprising reversal - China brand directors can expect a bigger packet than their Hong Kong counterparts - a maximum of $110,000 in the SAR, down $10,000 a year from 12 months ago, compared with $120,000 in China, unchanged from a year earlier.
"Talent in the service industry needs to be groomed and nurtured, limiting the amount of its supply through natural growth. We are experiencing an unprecedented demand on such talent in the rapidly growing market of China, causing a disparity in supply and demand," says Peng.
Lee believes that salaries in China will stay steady this year but adds that the longer term future will present a different picture.
"Because China is one of the hottest markets in the world, most multinationals are still in the process of setting up there and so they are in the investment phase. Employers are, therefore, willing to pay, especially as salaries are still competitive compared with other markets.
"But the picture could be very different in five years' time when China is likely to overtake markets like Hong Kong," she says.
Lee also points to the fact that the salary ranges in some positions are increasing in Hong Kong. "Cost is an important factor for both agencies and marketers. So rather than make a huge offer to lure a person to their company, they would try to hire someone with less experience but who demonstrates that they are ambitious, ready to grow and committed to the industry."
Singapore, which narrowly missed a double-dip recession, is expected to see salaries stay stagnant this year.
Lee said that although Hong Kong and Singapore were facing similar issues of slowing growth and high unemployment, the difference was that the island city's "leadership is strong, which can be good in hard times".
Lee adds: "Hong Kong does not seem to have a long-term vision, creating the perception that Hong Kong people do not have much confidence in the territory, which when combined with high unemployment pushes down salaries.
Even so, the difficulties facing Singapore's export-reliant economy are considerable.
TBWA Singapore chief executive officer, Johan Fourie, notes: "Even though the economy is not likely to be as bad as last year, I think clients in 2003 are going to put the squeeze on agencies even harder. I think, we will continue to see media adspend decline as margins shrink as clients push for reduced fees and commissions on media and production."
However, Lowe Singapore chief executive officer, Addison James, believes otherwise. "The 2003 figures should be higher than last year's because the economy is recovering."
A salary increase for agency executives "has been a long time coming", adds James.
The widely-held belief is that junior executives are in line for pay hikes but not their senior counterparts, whose packages are likely to be tied to performance bonuses.
Like Hong Kong, Taiwan has seen salaries fall over the past year, depressed by a slowing economy and high unemployment.
McCann's Peng says: "The Taiwan economy has deteriorated since 2001.
Many ad agencies are cutting costs by freezing headcount and/or applying pay cuts."
According to TMP's figures, declines have occurred in senior posts, while junior and middle ranking jobs have held steady.
TMP's Lee says that companies needed their subordinates to carry out orders but that senior executives were made accountable through performance bonuses.
Wherever executives are, there's one more factor that could potentially depress global economic activity and consequently employment and remuneration.
TMP based its figures on current economic conditions, which do not take into account a second Gulf war erupting. If that happens, all bets are off as to how high unemployment could rise or how far down salaries could tumble.
Additional reporting by Leithen Francis
Vital statistics: china outshines regional peers
GDP % 2001 2002 2003*
Hong Kong 0.6 1.4 3.5
Taiwan -2.2 3.0 4.0
Singapore -2.0 3.9 5.6
China 7.3 7.4 7.5
Inflation % 2001 2002 2003*
Hong Kong -1.6 -2.7 0.5
Taiwan - 0.3 1.5
Singapore 1.7 0.7 1.5
China 0.7 0.5 1.5
Unemployment % 2001 2002 2003*
Hong Kong 6.1 7.1 6.5
Taiwan 4.57 5.2 **
Singapore 3.4 5.2 3.1
China 3.3 4.5 4.5
Source: GDP & inflation, Asian Development Bank; unemployment, HK
General Chamber of Commerce & Taiwan & Singapore governments; China,
People's Daily. * forecast, ** unavailable
Asia-pacific salary survey (usdollars '000s): a mixed bag as china
stays flat but closes gap with slumping hk compensation levels
Hong Kong
2002 2003
AGENCIES - Management roles
Regional Chief Executive
Officer/Managing Director 260K + 230K +
Regional Managing Director - -
Chief Executive Officer 230K + 200K +
GM/Managing Director 200K + 184K +
AGENCIES
BD/Director of Client Service 110K - 135K 100K - 120K
Group Account Director 77K - 92K 70K - 83K
Account Director 54K - 77K 47K - 70K
Associate Account Director 38K - 54K 38K - 52K
Account Manager 28K - 38K 25K
Account Executive 15K - 28K 12K - 28K
Regional Media Director 110K - 160K 100K - 140K
Executive Media Director - -
Media Director/Associate 77K - 110K 77K - 110K
Media Manager 46K - 53K 46K - 53K
Media Planner/Buyer 23K - 27K 23K - 27K
Regional Executive
Creative Director 230K + 230K +
Executive Creative Director 135K - 195K 135K - 195K
Creative Director 90K - 130K 90K - 130K
Copywriter 27K - 46K 27K - 46K
Art Director 23K - 53K 23K - 53K
HONG KONG
2002 2003
MARKETERS
Marketing Communications
Director 95K - 153K 95K - 153K
Marketing Communications
Manager 60K - 85K 53K - 77K
Regional Marketing Director 100K - 150K 93K - 140K
Marketing Director 100K - 150K 93K - 140K
Regional Marketing Manager - -
Marketing Manager 45K - 77K 39K - 77K
Brand Director 90K - 120K 83K - 110K
Regional Brand Manager 69K - 90K 65K - 90K
Brand Manager 38K - 75K 47K - 70K
TAIPEI
2002 2003
AGENCIES - Management roles
Regional Chief Executive
Officer/Managing Director 195K + 173K +
Regional Managing Director - -
Chief Executive Officer 158K + 145K +
GM/Managing Director 150K + 138K +
AGENCIES
BD/Director of Client Service 83K - 101K 75K - 90K
Group Account Director 58K - 69K 53K - 62K
Account Director 40K - 58K 35K - 53K
Associate Account Director 29K - 41K 29K - 39K
Account Manager 21K - 29K 19K
Account Executive 11K - 21K 9K - 21K
Regional Media Director - -
Executive Media Director - -
Media Director/Associate 58K - 83K 58K - 83K
Media Manager 35K - 40K 35K - 40K
Media Planner/Buyer 17K - 20K 17K - 20K
Regional Executive
Creative Director - -
Executive Creative Director 101K - 146K 101K - 146K
Creative Director 68K - 98K 68K - 98K
Copywriter 20K - 35K 20K - 35K
Art Director 17K - 40K 17K - 40K
TAIPEI
2002 2003
MARKETERS
Marketing Communications
Director 71K - 115K 71K - 115K
Marketing Communications
Manager 45K - 64K 40K - 58K
Regional Marketing Director - -
Marketing Director 75K - 115K 70K - 105K
Regional Marketing Manager - -
Marketing Manager 34K - 58K 29K - 58K
Brand Director 67.5K - 90K 62K - 82K
Regional Brand Manager - -
Brand Manager 39K - 56K 35K - 53K
SINGAPORE
2002 2003
AGENCIES - Management roles
Regional Chief Executive
Officer/Managing Director 285K + 285K +
Regional Managing Director - -
Chief Executive Officer 225K + 225K +
GM/Managing Director 170K + 170K +
AGENCIES
BD/Director of Client Service 120K - 140K 120K - 140K
Group Account Director 65K - 105K 65K - 105K
Account Director 40K - 55K 40K - 55K
Associate Account Director 30K - 38K 30K - 38K
Account Manager 21K - 30K 21K - 30K
Account Executive 11K - 14K 11K - 14K
Regional Media Director 140K + 140K +
Executive Media Director 91K - 145K 91K - 145K
Media Director/Associate 54K - 90K 54K - 90K
Media Manager 28K - 45K 28K - 45K
Media Planner/Buyer 17K - 28K 17K - 28K
Regional Executive
Creative Director 225K + 225K +
Executive Creative Director 200K + 200K +
Creative Director 136K - 170K 136K - 170K
Copywriter 34K - 68K 34K - 68K
Art Director 34K - 68K 34K - 68K
SINGAPORE
2002 2003
MARKETERS
Marketing Communications
Director 58K - 74K 58K - 74K
Marketing Communications
Manager 36K - 52K 36K - 52K
Regional Marketing Director 140K - 230K 140K - 230K
Marketing Director 55K - 68K 55K - 68K
Regional Marketing Manager 85K - 142K 85K - 142K
Marketing Manager 31K - 48K 31K - 48K
Brand Director 68K - 96K 68K - 96K
Regional Brand Manager 57K - 85K 57K - 85K
Brand Manager 27K - 68K 27K - 68K
CHINA
2002 2003
AGENCIES - Management roles
Regional Chief Executive
Officer/Managing Director 200K + 200K +
Regional Managing Director - -
Chief Executive Officer 145K + 145K +
GM/Managing Director 120K + 120K +
AGENCIES
BD/Director of Client Service 90K + 90K +
Group Account Director 55K - 70K 55K - 70K
Account Director 30K -65K 30K - 65K
Associate Account Director 23K - 30K 23K - 30K
Account Manager 12K - 25K 12K - 25K
Account Executive 6K - 12K 6K - 12k
Regional Media Director 90K - 140K 90K - 140K
Executive Media Director - -
Media Director/Associate 45K - 80K 45K - 80K
Media Manager 19K - 29K 19K - 29K
Media Planner/Buyer 15K - 23K 15K - 23K
Regional Executive
Creative Director 225K + 225K +
Executive Creative Director 200K + 100K - 150K
Creative Director 70K - 120K 70K - 120K
Copywriter 23K - 39K 23K - 39K
Art Director 21K - 35K 21K - 35K
CHINA
2002 2003
MARKETERS
Marketing Communications
Director 65K - 110K 65K - 110K
Marketing Communications
Manager 25K - 50K 25K - 50K
Regional Marketing Director 65K - 135K 65K - 135K
Marketing Director - -
Regional Marketing Manager - -
Marketing Manager 40K - 60K -
Brand Director 65K - 120K 65K - 120K
Regional Brand Manager - -
Brand Manager 15K - 23K 15K - 23K
Note: Figures represent annual salary packages, not including
non-guaranteed components (e.g. stock options, performance bonuses);
figures for 2002 and 2003 refer to salary levels at the beginning of
each respective year
Source: TMP
