asia pacific Articles

The Great Fall of China - No Monkey Business

In October 2015, McLagan published an alert titled "The Great Fall of China?", where we discussed the slowdown in the Chinese economy, the steep fall in the Shanghai Composite and their potential impacts on pay in China and the Asia Pacific region. At the end of the year, and as we enter the Year of the Monkey, we've taken a fresh look at how that has played out in 2015 and what it could mean for 2016.

The Kingdom Reforms

The past few months have presented unpredictable consequences for oil exporting countries - the price of oil has nosedived by over 70% compared with June 2014 levels. The extent of the impact has been as unrelenting as the pace of the fall in the prices. These are troubling times for Saudi Arabia as the country faces an economic crisis of sorts - from its peak in 2014, Saudi reserves are estimated to have depleted by a whopping $150 billion. In 2015 alone, the Kingdom consumed $115 billion in reserves, when the crude oil prices averaged under $50 per barrel.

Competing in Hong Kong

The Competition Ordinance (Commencement) (no 2.) Notice 2015 was published in the Gazette on 17 July 2015, which declares 14 December 2015 as the effective date for the rule. This Ordinance, first outlined in 2012, restricts four types of conduct that are described as anti-competition - pricing manipulation, market division/allocation, output restriction or control, and bid rigging. Though not specifically targeted at employment matters, it is clear that the Competition Ordinance (CO) restricts practices like wage-fixing, formal and informal sharing of pay or benefits related information with competitors, industry-wide negotiations that impact wages and employment terms, and no-poaching agreements.

The Great Fall of China?

Impacts on compensation and talent management in China and Asia Pacific after the Recent Chinese Stock Market Correction and Renminbi Devaluation

New Banks: License to Skill

​For the majority of 2012 and 2013, the Reserve Bank of India (RBI) has seemed reluctant to take decisive action on policy issues and monetary mechanisms. It finally managed to rouse the banking industry in India, by giving the go-ahead for corporates and non-banking finance companies (NBFCs) to apply for new banking licenses. This decision has been long debated and even longer awaited, coming after a hiatus of 10 years.  The RBI had issued only two licenses in the early 2000s and prior to that its last activity was in 1993-94.

Demon-etization in India

On the 8th of November, the Prime Minister of India, Narendra Modi held a surprise press release and withdrew the tender of Rs 1000 and Rs 500 currency notes with a motive to eradicate black money (non-declared / taxed wealth) and fake currency. This move however led to the scrapping of 85% of the available cash in an economy which is almost 90% reliant on it.

Aon Names Ray Everett Global President of McLagan

Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, today announced it has named Raymond Everett as global president of McLagan. In this role, Everett is responsible for leading a team of experts who provide compensation, performance and talent intelligence to companies in the financial services and insurance industries. He leads the McLagan executive committee and is a member of Aon’s Talent, Rewards & Performance executive committee.

Managing Compensation in a Downturn

It seems like we are in for a rocky ride in 2016. While underlying economies of many countries and the financial performance of many companies still appear solid, numerous firms are preparing for a tough year ahead.

Indonesia Regulation on Wage Structure and Scale

Indonesia recently introduced a regulation on formulating, implementing, and communicating wage structure and scale. Its focus on pay transparency is expected to spur a number of new compensation and pay differentiation strategies for banks.

China’s Super Regulator: What to Expect

In July 2017, Chinese President Xi Jinping ordered the establishment of a super regulator, a Financial Stability Development Committee that will coordinate between regulators of the banking, securities, and insurance industries.

Bank Culture Reform has Officially Arrived in Asia

In March 2017 the Hong Kong Monetary Authority (HKMA) issued a note to all Authorized Institutions (AIs) in Hong Kong on the need for enhancing standards and practices in respect of governance and risk management and the role that culture reform would play in this process. The note contains practical guidance to AIs on the three pillars of culture – governance, incentive systems, and assessment and feedback mechanisms. It is applicable to AIs incorporated in Hong Kong, as well as firms that have a presence in the city, but are headquartered outside of Hong Kong.

Australian Regulators “BEAR” Down on Accountability

The Banking Executive Accountability Regime (BEAR) is scheduled to go live in Australia on July 1, 2018. This marks the Australian government’s latest response to improving accountability in the financial services industry. The new regulation aims to raise the bar for risk management and corporate governance standards and outline consequences for both institutions and responsible individuals who breach the required standards of the regulation.

Winning the Talent War in China

According to our recent China McLagan Talent Pulse Study, talent management tops the agenda for an overwhelming majority of the 58 participating firms, ahead of growth, innovation, and customer service. We’ve outlined some of the innovative strategies that firms can adopt to stay ahead and win the best talent in China.

What You Should Know About Rewarding Your People in China

Over the past decade, there has been an enormous amount of change in China's business and employment environment. We have seen the continuous reformation of state-owned enterprises, the rapid rise of private-owned businesses, extensive readjustment of industrial structures, and an increasing number of new employees entering the workforce.

Banks in India: Navigating the New RBI Guidelines

 The Reserve Bank of India (RBI) has, through a recent discussion paper, proposed new guidelines for executive compensation for private sector banks in India. The planned guidelines entail major changes to the existing guidelines, including a proposed cap on variable pay and inclusion of Employee Stock Option Plans (ESOPs) under variable pay. This article provides a quick summary of the changes that are occurring, who they will affect, and what banks should consider.