16 – 18 Sep 2008, Brussels MarriotE.N.G.’s 7th Annual Senior Executive Summit

Executive Remuneration Trends

Brussels Marriot

Richard M. FongGRP, CCP, CBP, MBA, Notary Public

Vice President, Corporate Development

Queen Entertainment Groups

www.linkedin.com/in/livin3ly

High GDP Growth Still in 2009?

3.5% World GDP Growth 2007

2007 2008fChina 11.8 10.1%Vietnam 8.3% 8.3%India 8.5% 8.2%Bangladesh 6.2% 6.2%Pakistan 5.9% 5.9%Indonesia 6.0% 6.0%Singapore 8.0% 5.8%Philippines 6.2% 5.9%

High GDP Growth Still in 2009? (cont.)

3.5% World GDP Growth 2007

2007 2008fMalaysia 5.8% 5.8%South Korea 4.5% 4.3%Thailand 4.3% 4.3%Hong Kong 6.3% 4.4%Taiwan 5.8% 4.1%Australia 4.2% 3.8%New Zealand 2.9% 2.1%Japan 2.0% 1.8%

Mounting Price Pressures

Inflation 2007 Vs 2008f

2007 2008fIndia 7.0% 5.3%Pakistan 6.7% 6.1%Vietnam 6.6% 6.2%Bangladesh 6.6% 6.0%Indonesia 6.6% 6.2%China 4.6% 4.0%Philippines 4.0% 4.5%South Korea 3.6% 2.7%

Mounting Price Pressures (cont.)

Inflation 2007 Vs 2008f

2007 2008fHong Kong 3.2% 3.5%Malaysia 2.4% 2.5%New Zealand 2.4% 2.9%Thailand 2.4% 2.3%Singapore 2.0% 4.5%Australia 2.0% 2.7%Taiwan 1.7% 1.7%Japan 1.3% 1.6%

Hot HR Market in Asia

Voluntary Turnover 2007 Vs Unemployment 2007

VT 2005 VT2006 VT 2007 UM2007India 15.0% 17.0% 20.0% 8.0%Vietnam 10.0% 16.0% 18.0% 4.0%Thailand 14.0% 16.0% 18.0% 3.0%Taiwan 12.0% 12.0% 18.0% 4.0%China 14.0% 14.0% 17.0% 4.0%Philippines 4.0% 12.0% 16.0% 8.0%Hong Kong 12.0% 13.0% 15.0% 5.0%

Hot HR Market in Asia (Cont.)

Voluntary Turnover 2007 Vs Unemployment 2007

VT 2005 VT2006 VT 2007 UM2007South Korea 9.0% 11.0% 14.0% 3.0%Australia 10.0% 13.0% 13.0% 5.0%Singapore 12.0% 13.0% 13.0% 2.0%Malaysia 9.0% 10.0% 12.0% 3.0%Japan 8.0% 10.0% 12.0% 4.0%New Zealand 15.0% 11.0% 11.0% 4.0%Indonesia 12.0% 7.0% 7.0% 10.0%

More Pay Rise Still for 2008

Pay Increase 2007 Vs 2008f

2007 2008fSri Lanka 15.0% 16.0%India 14.0% 15.0%Pakistan 13.0% 12.0%Bangladesh 12.0% 14.0%Indonesia 11.0% 11.0%Vietnam 9.0% 11.0%Philippines 8.0% 9.0%China 9.0% 10.0%

More Pay Rise Still for 2008 (Cont.)

Pay Increase 2007 Vs 2008f2007 2008f

South Korea 7.0% 7.0%Thailand 7.0% 7.0%Malaysia 6.0% 6.0%Taiwan 5.0% 5.0%Singapore 5.0% 5.0%Australia 4.0% 4.0%Hong Kong 4.0% 4.0%New Zealand 4.0% 4.0%Japan 3.0% 3.0%

More Bonus Expected in 2008

Bonus Payout 2007 Vs 2008f

2007 2008fSingapore 17.0% 18.0%China 15.0% 17.0%Malaysia 15.0% 17.0%Thailand 16.0% 16.0%New Zealand 13.0% 16.0%Indonesia 13.0% 15.0%India 15.0% 14.0%Hong Kong 13.0% 14.0%

More Bonus Expected in 2008 (Cont.)

Bonus Payout 2007 Vs 2008f2007 2008f

Taiwan 13.0% 14.0%Philippines 13.0% 14.0%Vietnam 12.0% 14.0%Australia 12.0% 14.0%Bangladesh 14.0% 13.0%Pakistan 12.0% 13.0%Japan 13.0% 13.0%South Korea 14.0% 13.0%

Sri Lanka10.0% 10.0%

Inflation Can Hurt!

Mean Pay Increase 2008f Vs Inflation 2008f

Inflation 2008f

Pay Increase

2008f

Net Pay Increase

2008fIndia 5.3% 15.3% 10.0%Pakistan 6.1% 13.2% 7.1%Bangladesh 6.0% 13.1% 7.1%Vietnam 6.2% 11.9% 5.7%Indonesia 6.2% 11.6% 5.4%Philippines 4.5% 9.0% 4.5%China 4.0% 9.8% 4.8%South Korea 2.7% 7.3% 4.6%

Inflation Can Hurt! (cont.)

Mean Pay Increase 2008f Vs Inflation 2008f

Inflation 2008f

Pay Increase

2008f

Net Pay Increase

2008fMalaysia 2.5% 6.4% 3.9%Thailand 2.3% 6.3% 4.0%Singapore 4.5% 5.5% 1.0%Taiwan 1.7% 5.1% 3.4%Hong Kong 3.5% 4.8% 1.3%Australia 2.7% 4.6% 1.9%New Zealand 2.9% 4.5% 1.6%Japan 1.6% 4.5% 2.9%

India Tops in Pay Rise

ABS R14-22(USD)

Rate of Increase

Amount (USD)

India 65,792 14.1% 9,277

South Korea 113,984 6.9% 7,865

Indonesia 58,997 11.3% 6,667

Australia 142,233 4.6% 6,543

Pakistan 45,359 13.5% 6,124

China 73,050 8.3% 6,063

Singapore 115,651 4.8% 5,551

Thailand 77,114 6.8% 5,244

Merit Pay Increase 2007 (Actual)

India Tops in Pay Rise (Cont.)

ABS R14-22(USD)

Rate of Increase

Amount (USD)

Hong Kong 123,203 4.2% 5,175

Philippines 59,627 8.3% 4,949

New Zealand 111,481 4.2% 4,682

Vietnam 44,495 10.0% 4,450

Taiwan 91,277 4.8% 4,381

Japan 135,944 3.2% 4,350

Malaysia 63,919 6.2% 3,963

Bangladesh 31,029 12.2% 3,786

Merit Pay Increase 2007 (Actual)

Changing Fortunes in Five Years

2007 (USD)

2012f (USD)

Australia 142,233 178,951

South Korea 113,984 162,122

Japan 135,944 161,459

Hong Kong 123,203 155,750

Singapore 115,651 151,151

New Zealand 111,481 138,926

India 65,792 135,233

Taiwan 91,277 117,609

Annual Base Salary R14 – 22 in USD

Changing Fortune s in Five Years (Cont.)

2007 (USD)

2012f (USD)

China 73,050 111,368

Thailand 77,114 105,158

Indonesia 58,997 101,218

Philippines 59,627 91,744

Malaysia 63,919 87,574

Pakistan 45,359 84,687

Vietnam 44,495 78,415

Bangladesh 31,029 57,422

Annual Base Salary R14 – 22 in USD

Surviving in the Thunderstorm

Managing HR Challenges

Rising Business Cost High Staff Turnover Lack of Experienced Personnel Surging Wage Costs

Why Employees Leave?

Reasons Rank 1 Rank 2 Rank 3

Better Salary 16% 37% 17%

Better Job Offer 65% 22% 7%

Poor Supervisory Relationship 1% 5% 8%

Overseas Job Opportunities 0% 6% 3%

Pursue Further Study 2% 3% 8%

Restructuring/Change of Job Content 1% 4% 12%

Change of Work Location 1% 3% 1%

High Workload & Pressure 3% 3% 11%

Off-Cycle Pay Increase is Common

Percentage of Cos Providing Off-Cycle Review

Australia 56%

China 56%

Malaysia 55%

India 52%

New Zealand 50%

Singapore 49%

Japan 47%

Pakistan 47%

Off-Cycle Pay Increase is Common (Cont.)

Percentage of Cos Providing Off-Cycle Review

Thailand 46%

Indonesia 44%

Taiwan 43%

Hong Kong 41%

South Korea 41%

Philippines 40%

Vietnam 36%

Retain Your Employees Wisely

Satisfaction Mix: The Key

Good Mix!!! Recognition Interesting Work Work Experience Money Life

What LTI Might Be Used?

Current LTI Plans Used in Asia

Stock Option 50% Restricted Stock Units 21% Restricted Stock 21% Deferred Cash Plan 21% Performance Share Units 14% Performance Share 14% Stock-Settled SAR 7%

Pay Communication: A Must

Pay dissatisfaction lowers morale and gives rise to low productivity and resignation

Pay data is widely available today Employees demand information Enhances acceptance of pay programs and

helps reduce misperceptions Gives employees feedback avenue on their pay Allows employees to focus on their job at ease Builds trust between company and employee

Questions

It’s QUESTION TIME!!

Thank You!

If you have any questions, please contact Richard Fong

atHong Kong Tel: (852) 9621-8200

orEmail: livin3ly@gmail.com

Web: www.linkedin.com/in/livin3ly

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