silver lining in corporate finance, The

Global Finance, Mar 1998 by Hanes, Kathryn

Now more than ever, Hongkong companies need first-rate treasurers to handle complex capital restructuring and the disposal of subsidiaries as they adapt to hard times. Demand for finance executives is particularly buoyant in China as companies set up regional offices in cities such as Shanghai. "There's great demand in China for people with audit skills and executives who can bring companies up to a standard of reporting that is acceptable," says Phillip Ginges, a partner at Hongkong-based consultancy Bennett Associates.

Headhunters in Hongkong say highly coveted finance executives are now commanding a salary premium of 15-20%. Andrew Tsui, managing director of financial services practice at recruiters Kom/Ferry International in Hongkong, says a managing director at a large US investment bank in Hongkong might be looking at 1997 base pay of about US$250,000. The typical bonus, however, has fallen by half the amount of a year ago.

Recruiters say demand is strong for people with a background in direct investment, mergers and acquisitions, information technology, or corporate restructuring. Few people in Asia are experienced in these areas, so "these people will have to be sourced in New York or London," says Karen Wong, director of the banking and finance division at consultants Michael Page Finance in Hongkong. Financial services specialists with experience in recessionary or slowed economies are highly prized, particularly those who have worked in Australia and Britain. Experience in dealing with distressed debt is a valuable commodity for former highfliers now seeking jobs.

But Wong says corporate cost-cutting could mean the end of lucrative expatriate packages for senior executives. "This opens up opportunities for Asians. When one expat's package equals the wages of several locals, corporates have to assess whom they want to keep."

The more skittish finance professionals in Hongkong are also redirecting their careers. Investment bankers are turning to business consulting or to managing finance departments for corporations. "And they're also looking for work as business analysts and journalists," says Ginges.

Moreover, unprecedented numbers of finance professionals are leaving Hongkong for more promising markets. North America and the United Kingdom are the most popular destinations. "For many professionals in Hongkong today, the thinking is `Young man, go West,"' says Tsui. And, he says, those who are prepared to relocate are being snapped up. Overseas employers now realize they have a better chance of getting top talent from Asia at an affordable price.