Brazil executives’ salaries top London, New York

* Surveys find Sao Paulo tops global executive pay

* Skill shortage, currency rise boosting pay levels

* Results defied executives’ own expectations

By Stuart Grudgings

RIO DE JANEIRO, Dec 10 (BestGrowthStock) – Top company bosses in
Brazil are earning higher salaries than their developed-world
counterparts in New York and London as the Latin American
country’s economy and currency surge ahead.

A chief executive in Brazil’s financial capital Sao Paulo
can on average expect to pocket $620,000 a year excluding
bonuses, a survey by Brazilian firm Dasein Executive Search
found. That was comfortably ahead of the $574,000 average
salary of top bosses in New York and $550,000 in London, the
next two top-ranking cities for executive pay.

The results partly reflect a shortage of executive talent
in Brazil as the education system has failed to keep pace with
the booming economy.

The dollar value of salaries has also been pushed higher by
Brazil’s supercharged currency, which has risen 11 percent
against the greenback since May and been described by bank
Goldman Sachs as the most overvalued in the world.

As a rare bright sport in the global economy, Brazil has
been the destination of choice for global investors looking to
park funds and escape paltry returns in the developed world.

Latin America’s largest economy is on course to grow 7.5
percent this year, driven by vibrant consumer demand and record
high employment that has led to skill shortages in some
industries. Inflation is a growing worry for policy makers, who
nonetheless deny that Brazil is showing signs of an asset
bubble.

The Dasein survey questioned 80 executives in multinational
firms in the industrial sector, including car, steel and mining
firms, with between 1,000 and 15,000 employees.

A parallel survey carried out by the New York-based
Association of Executive Search Consultants (AESC), of which
Dasein is a member, also put Sao Paulo ahead of New York,
London and Hong Kong.

The AESC survey found that the results were the exact
opposite of what the executives themselves expected — 82
percent of the 42 people surveyed believed that Sao Paulo would
come last.

David Braga, business manager at Dasein, said Brazil’s
humming economy and the prospect of higher salaries were
drawing back to Brazil executives who had left in search of
higher salaries as well as attracting a growing number of
foreigners.

“We’re seeing a strong trend of repatriation. Lots of
Brazilians who left to work in other countries are now trying
to come back because they can get salaries as high as anywhere
else,” he said.

With mergers and acquisitions in Brazil reaching record
volumes for two straight years, and bond and stock issuance
surging, banks in the country are hiring at a breakneck pace to
keep up with demand, driving salaries higher.

Brokerages and banks such as Barclays Capital (BARC.L: ),
Goldman Sachs (GS.N: ) and Morgan Stanley (MS.N: ) (Read more about the money market today. ) have hired more
research analysts, investment bankers and traders, increasing
competition for top talent in the country.

A report by AESC earlier this year found that there was an
“acute shortage” of executive leadership talent in Brazil,
partly due to the country’s notoriously poor school system.

“The neglect of the public educational system and flight of
the best talent to opportunities abroad over the last 30 years
has left Brazilian organizations with a leadership pool
insufficient to meet today’s requirements,” it said.
(Additional reporting by Elzio Barreto; Editing by Tim
Dobbyn)

Brazil executives’ salaries top London, New York