Asia Crisis & Security Group 2010 Annual Compensation Survey

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Asia-PacificAnnual Compensation Survey 2010

November 2010

Asia Crisis and Security Group

Asia Crisis and Security Group 2010 see Copyright Notice for details

For further information please contact [email protected]


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1.0 INTRODUCTION

The purpose of this survey is to provide accurate and up to date compensation data regardingcorporate security, crisis and continuity positions in the Asia-Pacific

The data and findings from this survey are intended for those professionals themselves, for theirindustry peers in other regions of the world, Human Resource functions and for other industrystakeholders, such as recruitment firms

The intention in providing this data and findings is to enable a better understanding of compensationspecific to the Asia-Pacific, and how compensation packages relate to experience and structure ofpositions

The anticipated outcome is that companies creating corporate security, crisis and contingencymanagement functions in Asia-Pacific, as well as those that already have such positions, canposition them appropriately in regard to location, management level, experience, education andcompensation

The 2010 survey compares data from the 2006 to 2009 surveys which provides a benchmark andtrend analysis for the industry

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2.0 SURVEY HIGHLIGHTS

Total Compensation

Total Compensation figures across the survey group are all up compared with the 2009 survey, excludingRegional Managers where a drop of 10.6% was reported

Average Total Compensation across the survey group has increased by 4.95% since 2010 and is almost onpar with the 2008 figure. Median Total Compensation is up by 5.6%, and on par with the 2008 result.

On an industry sector basis compensation rose in the Banking/Finance and Petro-chemical/Mining/HeavyIndustry/Tobacco sectors. The IT/Technology sector was flat whilst drops were noted in the Service andPharmaceutical/Bio-Science/Chemical sectors

Base Compensation

Average Base Compensation across the 2010 survey group is up by 7% since 2009 and Median BaseCompensation is up by 12% in the same period

Bonuses

Bonuses account for 23.2% of Total Compensation, up from 17.3% in 2009 and very close to the 2008figure.

Education and Accreditation

The highest paid respondents have Masters level security and risk qualifications, up 10% compared withthe 2009 survey

The value of accreditation has risen again. CPP holders receive 27% more Total Compensation whencompared to 2006, with the 2010 figure up 6.3% on 2009. CFE holders have recorded the single largestincrease in Total Compensation with a 25% increase between 2009 and 2010.

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3.0 SURVEY RESULTS

All figures quoted in the survey are in US dollars and represent the Total Compensationpackage earned by the respondents. Figures left blank indicate a breakdown of data to that

level was not statistically significant To achieve these numbers the base salary, annual bonuses, housing, education and other

allowances of respondents were added together

2006 to 2009 ACSG survey benchmark data is used where available and marked in each tableor page that it is used.

A breakdown of Total Compensation structures is provided in Section 4.0

An analysis of questions on career development is included at Section 5.0

A breakdown of respondents can be found in Section 6.0 The 2010 survey asked respondents performing crisis, emergency or contingency roles outside

of a Corporate Security function to indicate such. As there were only 4 respondents whocategorised themselves outside of a Security role this information has not been analyzedseparately but rolled up into the broader results.

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COMPENSATION DATA (1/8)

Source: ACSG survey 2007 to 2010data

Average

108,750 180,000 240,000 194,487

25th percentile Median 75th percentile

A. All Respondents - Total Compensation (US$)

2008

Average

80,000 125,000 170,000 128,429

25th percentile Median 75th percentile

B. All Respondents - Base Compensation (exclusive of all bonuses and allowances) (US$)

80,000 120,000 160,000 122,41620082009

100,000 170,000 235,000 182,9452009

82,500 140,000 190,000 137,5002010

115,000 180,000 260,000 192,0002010

$100,000.00

$120,000.00

$140,000.00

$160,000.00

$180,000.00

$200,000.00

2007 2008 2009 2010

Average Total Compensation Average Base Compensation

4 YearCompensationTrend Data

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Source: ACSG survey 2008 to 2010 data

2009

2009

2009

2009

2009

2009

90,000

160,000

212,500

60,000

120,000

140,000

112,500

210,000

270,000

90,000

170,000

200,000

150,000

305,000

342,500

165,000

200,000

230,000

128,500

235,500

309,000

129,000

164,500

199,500

Average25th percentile Median 75th percentile

C. All Respondents - Total Compensation by Job Level (US$)

55,000 90,000 125,000 105,300

90,000 140000 165,000 139,100

85,000 120,000 140,000 115,500

107,500 180,000 230,000 167,500

171,250 240,000 327,500 256,400

180,000 210,000 285,000 231,700

2008

2008

2008

2008

2008

2008

Country Manager 46,250 112,500 166,250 115,300

Area Manager 101,250 147,500 171,250 146,400

RM - Minor 70,000 90,000 137,500 99,100

RM - Major 108,750 152,500 198,750 168,100

Regional Manager 182,500 235,000 290,000 229,200

Global Manager 180,000 285,000 320,000 283,100

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D. All Respondents - Total Average Compensation by Job Level (US$) 4 Year Trend Data

$90,000

$130,000

$170,000

$210,000

$250,000

$290,000

2007 2008 2009 2010

Country Manager Area Manager RM - Minor

RM - Major Regional Manager Global Manager

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8/33Source: ACSG survey 2008 to 2010 data


E. All Respondents - Total Compensation by Industry (US$)

Banking/Financial Services

150,000 220,000 310,000 242,000

IT/ Telecom/ Technology

110,000 225,500 121,000

Petrochemical/ Mining/Heavy Industry/Tobacco

130,000 172,500 232,500 187,000

Pharmaceutical/Bio-science/Chemical

140,000 210,000 305,000 226,500

Service Industry

112,500 255,000 300,000 207,000

Average25th percentile Median 75th percentile

145,000 210,000 285,000 219,250

110,000 162,500 128,300

160,000 235,000 320,000 232,900

120,000 222,500 290,000 210,900

145,000 180,000 260,000 198,700

2008

2008

2008

2008

2008

75,000

53,750

112,500 165,000 227,500 193,2502009

120,000 170,000 129,5002009 75,000

2009 140,000 170,000 230,000 186,900

2009 220,000 250,000 285,000 244,000

2009 290,000 242,800

NGOs 175,000 181,000

Transportation/Logistics 175,000 148,900

Note: Data was not recorded for NGO and Transport sectors in 2008 and 2009 due to lack of data

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F. All Respondents - Total Average Compensation by Industry (US$) 5 Year Trend Data

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

$260,000

2006 2007 2008 2009 2010

Banking/Financial Services IT/Technology

Pharma/Bio-science/Chemical Petrochem/Heavy Industry/Tobacco

Service Industry

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H. All Respondents - Total Average Compensation by Qualifications, Education and Accreditation (US$)

All Respondents by Education Level (US$)

Education level

Average 2009 2008

Masters Level Security Qualification

CFE

CPP

Masters or PhD (All Types)Secondary

Bachelor Level Security Qualification

MBA

Tertiary (All types)

Diploma Level Security Qualification

-

218,800

200,900

221,000

182,900

-

-177,000

-

245,000

244,400

219,800

202,500200,600

191,250

183,000182,400

172,500

220,700

204,400

206,600

210,000152,000

185,000

189,700171,600

150,400

Compensation

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I. All Respondents - Total Average Compensation by Qualifications, Education and Accreditation (US$)

$150,000

$175,000

$200,000

$225,000

$250,000

2006 2007 2008 2009 2010

CPP CFE

Masters or PHD (All types) Masters Level Security Qualification

Bachelor's Level Security Qualification Diploma Level Security Qualification

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3.2 GLOBAL MANAGERS (GM)


The Global Manager is defined as the most senior manager in the organization responsible for security,crisis or contingency management. The ACSG 2010 Compensation survey received 16 responses for theGM group.

The average Total Compensation for a GM based in the Asia-Pacific in the 2010 survey is US$ 283,100,an increase of 21% when compared with 2009 survey data. The Median figure for 2010 is US$ 285,000,an increase of almost 36% when compared with the 2009 survey data.

Based on the 2010 data the following breakdown analysis was conducted:

Global Managers Total Compensation by Industry (US$)

AverageBanking/Financial Services

315,000

Industry316,000

Service

2008

247,500

Global Managers Total Compensation by COLA (US$)Average

COLA 1

Industry

COLA 2

225,000

349,000

COLA 3 263,750

2009

353,000

247,500

Petrochemical/ Mining/Heavy Industry/Tobacco

278,750

329,000

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3.3 REGIONAL MANAGERS (RM)

Source: ACSG survey data

The Regional Manager is defined as the most senior manager in the organization in the Asia-Pacificresponsible for security, crisis or contingency management.

The ACSG 2010 Compensation Survey received 62 responses for the RM group. The average Total Compensation for a RM in the AP in the 2010 survey is US$ 229,200, a decrease of

10.6% when compared with the 2009 survey.

The median Total Compensation for a RM in the AP in the 2010 survey is US$ 235,000, a decrease of 2.1%when compared with the 2009 survey

RM Total Compensation is broken down by Industry sector and COLA in the following three pages.

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COMPENSATION DATA REGIONAL MANAGERS (1/3)

Source: ACSG survey data 2008 to 2010

Regional Managers - Total Compensation by Industry (US$)


IT, Telecommunications/Technology


Petrochemical/Mining/Heavy Industry/Tobacco

25th Percentile Median 75th Percentile Average

225,000 310,000 375,000 325,000

110,000 180,000 200,000 166,000

Service Industry

150,000 177,500

320,000 294,000

190,000 203,000

212,500 250,000 287,500 267,500

80,000 170,000 222,500 151,500

325,000 302,900

250,000 273,500

197,500 193,300

2008

2008

2008

2008

2008

2009 240,000 380,000 420,000 342,000

2009 165,000 149,500

2009 220,000 230,000

2009265,000 253,500

2009 290,000 272,000

NGO 170,000 208,000

Transport/logistics 204,000185,000

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Regional Managers - Total Compensation by Industry (US$) 5 Year Trend Data

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2006 2007 2008 2009 2010


Pharma/Bio-science/Chemical Petrochem/Heavy Industry/Tobacco

Service Industry

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All Regional Managers by COLA (US$)

25th Percentile Median 75th Percentile Average

Region 1 (Japan, Korea and Hong Kong)

160,000 230,000 340,000 274,000

Region 2 (Beijing, Singapore, Shanghai, Sydney, and Taipei) 190,000 237,500 290,000 246,600

Region 3 (All non Region 1&2 locations)

160,000 186,600

170,000 200,000 300,000 225,200

190,000 240,000 285,000 241,000

95,000 135,000 278,750 164,300

2008

2008

2008

2009

2009

2009

200,000 270,000 410,000 299,500

170,000 230,000 306,250 236,750

120,000 190,000 240,000 199,400

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3.4 REGIONAL MANAGER MAJOR FUNCTION (RM-Major)


The Regional Manager - Major Function is defined as the regional manager for one or more major securityfunctions within the organisation, or a Deputy Regional Manager, reporting in to a Regional Manager.Major functions are Physical Security, Fraud/Fraud Risk Management, Business Continuity Management,Crisis Management & Emergency Planning and Investigations

The ACSG 2010 Compensation Survey received 24 responses for the RM Major group

The average Total Compensation for a RM Major in the AP in the 2010 survey is US$ 168,100, amarginal increase when compared with the 2009 survey.

The Median Total Compensation for a RM Major in the AP in the 2010 survey is US$ 152,500, adecrease of 15% when compared with the 2009 survey.

RM Major Total Compensation is broken down by Industry sector and COLA on the following page.

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COMPENSATION DATA REGIONA MANAGER MAJOR FUNCTION


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COMPENSATION DATA: REGIONAL MANAGER MAJOR FUNCTION


All RM-Major - Total Compensation by Industry (US$)

Average

275,000

126,900

Industry


Combination of remaining Industries

Median

250,600

142,500

255,500230,000

171,000180,000

2008

2008

All RM-Major - Total Compensation by COLA (US$)

COLA Region

Region 1 (Japan, Korea, Hong Kong)

Region 2 (Beijing, Singapore, Shanghai, Sydney, Taipei)

Region 3 (All non Region 1&2 locations)

Median Average

239,400

171,400

102,200

180,000

150,000

105,000

251,900265,000

163,100150,000

174,000195,000

2008

2008

2008

178,000180,5002009

2009 154,200160,000

188,500190,000

2009

2009

2009

185,000185,000

124,00070,000

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3 5 REGIONAL MANAGER MINOR FUNCTION (RM Mi )


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3.5 REGIONAL MANAGER MINOR FUNCTION (RM-Minor)


The Regional Manager - Minor Function is defined as the regional manager for one or more minorfunctions within the organization. Minor functions are typically a part of the RM-Major functions outlined in

Section 3.4 and include security systems management, guarding management, due diligenceinvestigations, staff screening, training & awareness and command center management

The ACSG 2010 Compensation Survey received 11 responses for the RM Minor group

The average Total Compensation for a RM Minor in the AP in the 2010 survey is US$ 99,100, adecrease of 14.2% when compared with the 2009 survey.

The median Total Compensation for a RM Minor in the AP in the 2010 survey is US$ 90,000, adecrease of 25% when compared with the 2009 survey.

RM Minor Total Compensation is broken down by Industry sector and COLA on the following page.

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COMPENSATION DATA REGIONAL MANAGER MINOR FUNCTION


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COMPENSATION DATA: REGIONAL MANAGER MINOR FUNCTION


All RM Minor - Total Compensation by Industry (US$)

Average

145,000

83,750

Industry


Combination of remaining Industries

Median

140,000

82,500

All RM Minor - Total Compensation by COLA (US$)

COLA Region

Region 1 (Japan, Korea, Hong Kong)

Region 2 (Beijing, Singapore, Shanghai, Sydney, Taipei)

Median Average

148,300

84,300

145,000

85,000

140,000 152,000

85,00085,0002009

2009

188,500190,000

185,000185,000

Note: There was insufficient data for a COLA Region 3 report

2009

2009

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3 6 AREA MANAGERS (AM)


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3.6 AREA MANAGERS (AM)


An Area Manger is defined as a security, crisis or continuity manager with responsibility for a sub-region: Greater China; North & North East Asia; South Asia; South East Asia and Australasia

The ACSG 2010 Compensation Survey received 18 responses from AMs based within the Asia-Pacific

The average Total Compensation for an AM in the AP in the 2010 survey is US$ 99,100, a decrease of14.2% when compared with the 2009 survey.

The median Total Compensation for an AM in the AP in the 2010 survey is US$ 90,000, a decrease of25% when compared with the 2009 survey.

AM Total Compensation is broken down by geographical area and Industry sector is presented on thefollowing 2 pages.

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COMPENSATION DATA: AREA MANAGERS (1/2)


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Area Managers - Total Compensation by Industry (US$)

AverageMedian

97,500

125,000

160,000

Industry


IT, Telecommunications/Technology

Petrochemical/Mining/Heavy Industry/Tobacco

105,000

125,700

210,000


120,000 114,500

90,000 76,400

220,000

225,000 198,300

149,000

2008

2008

2008

2008

140,000 115,0002009

2009

2009

2009

110,000 156,000

140,000 164,000

150,000 163,300

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2007 2008 2009 2010


Petrochem/Heavy Industry/Tobacco Pharma/Bio-science/Chemical

4 Year

CompensationTrend Data

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Area Managers - Total Compensation by Area (US$)

Average

Australasia

Greater China

North/North-East Asia

South Asia

105,000

160,000

191,700

82,100

175,000

152,700

160,700

54,500

2008

2008

2008

2008

2009

157,500

2009

2009

2009212,500

182,500

81,250

Area

Note: There was insufficient data for a SEA report

0

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010

Australia Greater China North/North-East Asia South Asia

4 YearCompensationTrend Data

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3 7 COUNTRY MANAGERS (CM)


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3.7 COUNTRY MANAGERS (CM)


A Country Manger is defined as a manager with responsibility for a single country. Hong Kong isdefined as a single country for this survey

The 2010 ACSG Compensation Survey received 18 responses from CMs who are based in the Asia-Pacific region.

The average Total Compensation for a CM in the AP in the 2010 survey is US$ 115,300, an increaseof 9.5% when compared with the 2009 survey.

The median Total Compensation for a CM in the AP in the 2010 survey is US$ 112,500, an increaseof 25% when compared with the 2009 survey.

CM Total Compensation is broken down by geographical area and Industry sector is presented on

the following page.

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COMPENSATION DATA: ALL COUNTRY MANAGERS


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COMPENSATION DATA: ALL COUNTRY MANAGERS


Country Managers - Total Compensation by Industry (US$)

AverageIndustry

Banking/Financial Services114,400

IT, Telecommunications/Technology 54,000

164,300

104,200

2008

2008

110,5002009

2009 68,000

Country Managers Total Compensation by Country (US$)

Average

170,000

110,500

48,000

111,250

168,300140,000

110,000

90,000

Australia

India

Japan

China

Country

2008

2008

2008

2008

2009

2009

2009

2009

142,500

95,000

60,000

140,000

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4.0 ANALYSIS OF COMPENSATION STRUCTURE


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The graph below represents a breakdown of Total Compensation compared across industries. The comparison isbased on averages across all compensation packages across each industry and is represented only in proportionalterms


0%

20%

40%

60%

80%

100%

Banking/

Financial

Services

IT/Technology NGO Pharma/ Bio-

science/

Chemical

Petrochem/

Heavy

Industry/Tobacco

Service

Industry

Transport/

Logistics

Other

House

Bonus

Base

Medical Benefits Medical benefits provided to respondents varied significantly, with no determinable trend by industry or role 57% of respondents receive standard local coverage, 27% receive full expatriate medical coverage, whilst 13%

receive Third Country National (TCN) coverage and 7% receive no medical coverage from their employer Dental coverage was only provided to 35% of respondents, with 11% of all respondents receiving full dental

coverage

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5.0 CAREER DEVELOPMENT (1/3)


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5.0 CAREER DEVELOPMENT (1/3)


Survey respondents were asked to provide feedback on their anticipated career direction. The results are representedin graphical format below.

What is Your Anticipated Career Direction in the Next 5 Years?

0%

20%

40%

60%

80%

100%

No room for

promotion

Promotion to

global level

Promotion in the

AP Region

Transfer to

alternate security

function

Responsibility for

additional

geographies

Move into a non-

security role

Country Managers

RM Minor

RM Major

Regional Managers

Group Managers

Area Managers

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CAREER DEVELOPMENT (2/3)


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( )


Survey respondents were asked to provide feedback on their anticipated career direction. The results are representedin graphical format below.

Why Would You Consider Changing jobs?

0%

20%

40%

60%

80%

100%

I am not

considering

moving

Improved

compensation

A promotion Better

promotional

opportunities

More challenges Greater

Responsibility

Country ManagersRM Minor

RM Major

Regional Managers

Group Managers

Area Managers

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Please list any accreditations or qualifications you are seeking to attain in the next 5years.

CPP 20 CFE 11 Information Security

Qualification

13

PSP 3 Security RelatedQualification

4 BCM Qualification 4

PhD 3 MBA 2 Legal Qualification 2

The following table represents a collation of courses and accreditations that respondents are expected to takein the next 5 years. Responses below 2 have not been included.

Source: ACSG survey data 29

6.0 Respondent Breakdown


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p


Survey respondents in 2010 are broken down as follows:

12%

12%

7%

16%42%

13%CountryManager

Area manager

RM - Minor

RM - Major

Regional

Manager

Global Manager

By Managerial Level

31%

21%7%

11%

14%

10%5%

Banking/Financial

Services

IT/Technology

NGO

Pharma/Bio-

science/Chemical

Petrochem/Heavy

Industry/Tobacco

Service Industry

Transport/Logistics

8%7%

15%

21%

49%2 to 5

5 to 10

10 to 15

15 to 20

Over 20

3%

35%

11%

51%

PhD

Masters

Secondary

Tertiary (Bachelor's

Degree/Diploma)

By Industry sector

By Time in Industry (yrs) By Education Level

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7.0 SURVEY BACKGROUND


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Source: Asia Crisis and Security Group

Methodology

The survey was completed by individuals who work in the security, crisis and continuity industries in the Asia-Pacific via anon-line survey tool. This methodology was adopted to encourage as much participation as possible

Respondents

The survey targeted 360 security, crisis and continuity professionals working in corporations or organizations and based inthe Asia-Pacific.

Survey Tool

The compensation survey was performed using the Zoomerang (www.zoomerang.com) survey tool. This tool allows forcustomized surveys to be developed. The tool also allows for anonymous responses as no e-mail or IP address is madeavailable to the administrator of the survey

Survey Period

The survey was conducted from August 13th to September 19th, 2010

DEFINITIONS

Accreditation is the recognition of achievement in the subject area by way of experience, examination and ongoingeducation. Accreditation must be currently valid to be included

Average is the standard statistical value calculated by adding up individual data elements and dividing by the total numberof data elements used

Xth percentile - That data point that is higher than X% of all other data in the sample when ranked from low to high

Median is the 50th percentile

COLA - For the purpose of the survey 3 distinct Cost of Living Area regions were defined to ensure respondents did notidentify themselves by nature of unique personal data. The definitions also assisted in ensuring the data sets obtained wereof statistical relevance. The Mercer COLA index for 2009 was used, which establishes New York as 100. The regions weredefined as follows:

COLA 1 Japan, Korea, and Hong Kong (110)

COLA 2 Beijing, Shanghai, Sydney, Singapore, and Taipei (85-109)

COLA 3


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COPYRIGHT NOTICE

Source: Asia Crisis and Security Group

This report is published by the Asia Crisis and Security Group (ACSG) and remains the property of the ACSG

The report may not be reproduced (save for the circumstances below) in any form, nor in any publication without theexpress consent of ACSG

The report may be used openly inside organizations to discuss the structure and compensation levels of corporate securitydepartments

The report will be provided directly to a number of executive search companies for use in advising clients and candidateson compensation trends in the Asia-Pacific

The report will be provided to a number of security organizations for distribution to their membership with the objective ofassisting hiring managers and budget holders when establishing Corporate Security positions in the Asia-Pacific

The Asia Crisis and Security Group (ACSG) is a network of corporate security, crisis and continuity managementprofessionals with primary responsibilities in the Asia-Pacific region. The Group facilitates cooperation, informationsharing and best practices amongst professionals across the region for the benefit of the members and their organizations

The Group was formed in early 2005 in direct response to the Asia Tsunami of December 26th 2004. As a result of workingtogether in response to the Tsunami the founding ACSG members recognized the value of growing cooperation andinformation sharing amongst corporate security professionals in Asia-Pacific

The ACSG Steering Committee undertakes projects on behalf of the membership that are intended to serve the bestinterests of the membership

As of October 30th 2010, the ACSG had 350 individual members representing 150 organizations operating in the Asia-Pacific. These organizations are primarily MNCs but also include NGOs and a limited number of representatives fromGovernment agencies whose membership benefits the objectives of both the ACSG and their own organizations

ACSG is a non- profit organization registered in Hong Kong in 2006 under the Societies Ordinance

More information is available at www.acsgroup.org, or via [email protected]

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Asia Crisis & Security Group 2010 Annual Compensation Survey

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