Asian firms focus on variable pay for executive compensation

Fewer long-term incentive programs, despite fierce competition for CEOs
By Fermin Diez, Hans Kothuis and Jiawen Chua
|Canadian HR Reporter|Last Updated: 07/17/2012

In Asia’s rapidly evolving economies, there aren’t many certainties or lasting trends, yet one thing remains constant: An organization’s talent is vital to its continued growth.

Retention is one of the top three executive talent issues for most companies and this concern is increasing, reflecting the fierce competition for talented leaders among Asian organizations.

The notion of human capital as an investment to be cultivated — as opposed to a bottomless resource that can be tapped on demand — represents one of the most significant shifts in business thinking in recent years. In boardrooms around Asia, it has become increasingly accepted that successfully competing for human capital is as important as competing for market share. In fact, it could well be retaining talent is harder than retaining clients.