Argentina is more expensive. For many international companies, wages begin to be received as “expensive.” From our look like Headhunters, We see the real numbers: Indeed, we have gone from ridiculous values to figures that are high today. Interestingly, the “Psychological impact”It is lower when they express themselves in pesos than in dollars. But from the outside, they sound expensive.
What is reality?
After analyzing various regional surveys, we can affirm that management wages in Argentina are aligned, in general terms, with those of other Latin American countries. The differences are less than 20% and are concentrated in some specific profiles.
What changes – and much – is the context. From the perspective of those who pay those salaries, Argentina continues to generate uncertainty. It comes from very complex years, and today it is still difficult to achieve profitability. The volumes have fallen and they are likely not to return to previous levels soon. Because? Because those levels were inflated by subsidies, a fictional exchange rate and other artifice that supported an unreal economy.
Argentina worked like an inflated balloon with a constant pump. That bomb was deactivated, and today the country is in its “natural size.” Growing again will require doing it genuinely. And until that happens, it is understandable that current costs – including wages – are high in front of uncertain profitability. And that leaders have the difficult mission of sustainable business in this complex context.
And from the side of who charges?
The executive, like any other citizen, also perceives that Argentina became more expensive. Not only in food, but especially in items such as clothing and vehicles. The return of public services rates to logical levels increased its weight in monthly income (and, incidentally, at the expense). Private education and health are expensive. Only housing can be said that it is somewhat more accessible than in other countries.
In addition, personal services – dometics, repairs, hairdressing, personal care – are also expensive. Because? On the one hand, for the tax burden. On the other, a local peculiarity: many low or low middle class people have middle -class expectations and aspire, logical, higher than their peers in other countries in the region.
This is clearly reflected in the salary surveys of more junior positions, such as analysts: Argentina is much more expensive in those middle and low segments.
How much is the salary of executives
A CEO is normally in a range of 20 to 35,000,000 $ and an executive that reports, in a range of 12 to $ 20,000,000.
For many, it seems loose, for others, it does not justify responsibility. Let’s look at it from the company’s point of view. If it were a company that does not have CEO and that incorporates it for the first time, it seems a strong impact of US $ 300,000 per year to incorporate into the budget. That is why there are companies that resist and look for CEO S for minor values.
Let’s look at what an CEO has to be occupied and then judge. To begin, you must give accounts to your shareholders, or a directory or a regional chief. This implies explaining what he is going to do and what he did and why the results are what are … You have to prepare a plan with results, in our unpredictable country it is a miracle that is requested, and explain why the plan is that. And then monthly explain any variation. You have to resolve financing crises in a little credit and expensive market. You have to operate your team, making sure that each one manages according to their vision. You have to gather them periodically to generate teamwork and share what happens. You have to resolve the conflicts that arise. Create adequate climate. Make note of the decisions that are made and the projects that are faced, and monitor them to ensure that they are fulfilled. You have to make decisions about layoffs, which are usually very painful or traumatic. You have to make decisions about incorporations. Define price and salaries guidelines, where there is a permanent pull. It must represent the company in forums and cameras and interact with peers. And above all, it has to ensure that when situations that alter the planned results, and that do not depend on it, even if that is so, decisions are made again to bring the company closer to the results. This part, of being responsible for results in situations that do not depend on it, is, obviously, the greatest resilience test and the one that generates the greatest tensions. And all this, always appearing to have everything under control and be calm. Without transmitting the pressures down and not up.
Let’s look at the impact of salary on the company. If the company is an SME that invoices 30,000,000 US $ per month and has a profitability of 12%, the CEO would be representing a cost of 10% of the profitability. Which means that if its management increases profitability by 10%, it is paid alone. If the company were 10 times larger, the cost is only 1% of the profitability, so that if it rises in just 10% it costs an tenth of that. There seems to be no reason to spare the salary to obtain the person who produces the best results? However, there are many directors or shareholders looking for wrong savings.
Let’s see now that an executive must do with your income. On the one hand, having a certain standard of living in line with the position and on the other hand as work is tensioning and arduous, and often demands sacrifices that are a cost for family life, you will surely want to invest in vacations, in education of your children, etc., so that your savings capacity exists but is not gigantic. And he needs it because it is likely that before the 60s he must be thinking of another activity that allows him to live according to his wishes until the ages that are lived today.
A last factor to take into account is that of supply and demand. Do what a CEO does, and do it well, there are not many who can do it. Therefore, when you are looking for people who have proven to be able to achieve what a company wants to achieve, you will find very few people. Those people are possibly occupied and it is natural that to attract them you have to offer them an adequate incentive. No one is going to pay more, that does not exist, the one who pays it because that is the market value of a profession that has few exponents.
In conclusion, although the figures received by executives are high, that value is a value set by the market. And it is high because the tasks are complex and varied and are subject to many variables that must be dominated, and because they demand activities and sacrifices that are not available to everyone. And put in context, it is not that their income allows them a lavish life as many people linked to business with the State.
We let each one extract their conclusions.
Founding partner of Backer & Partners and consultant specializing in searches for senior executives and cultural transformation of organizations
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
