Germany General Manager Salary & Benefits Report
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1 2008 TM Germany General Manager Salary & Benefits Report
2 Dear Industry Executive, Welcome to the HCE Hospitality Compensation Exchange TM, the hotel industry s most comprehensive guide to salaries and benefits. We have created the HCE to provide hotel owners and operators with current and credible information concerning salary, bonus and employee benefit trends. Overview & Methodology HVS Executive Search is widely recognised as a leader in providing human resource consulting to the hospitality industry. Core competencies of the firm include retained executive search, compensation management, and corporate governance counseling. Supporting the firm s compensation consulting practice is the HCE Hospitality Compensation Exchange TM. The HCE is the most comprehensive survey of the hotel industry and encompasses data from 5000 hotels and 160 companies. Scope of Project HVS was commission to conduct a study of remuneration practices for the General Manager position at key luxury hotels in Germany. The survey solicited data covering base salary, bonus and benefits such as housing, car, schooling, health insurance and private pension plans. Data from the following report has been obtained through a written survey and is self-reported. This report includes data from ten local market competitors in Berlin, Frankfurt, Hamburg and Munich. 2
3 Data Analysis Data is presented in standard percentile format (minimum, 25 th percentile, 50 th percentile, 75 th percentile, and maximum). A percentile is a measure of location in a distribution of numbers that defines the value below which a given percentage of the data fall. For example, the 75 th percentile is the point below which 75 percent of the data fall. The minimum and maximum represent the smallest and largest data points for each of the compensation components. We prefer the percentile format, as it is a better reflection of real compensation levels and is less susceptible to statistical outliers. Findings It has only been possible to report full findings for criteria where we had complete responses from at least five participating hotels. All data is presented in Euro. When reported as Net the data has been grossed up at an approximate tax rate of 35%. Please do not hesitate to contact us should you have any questions. HVS respectively submits its findings, With kindest regards, Christopher Mumford & Pooja Vir Senior Associate Tel: Tel: Mbl: Mbl: cmumford@hvs.com pvir@hvs.com 3
4 Table of Contents General Manager Position 6 Appendix A Survey group 7 Appendix B Position description 8 HVS Executive Search Worldwide Offices 9 4
5 HVS Executive Search Hospitality Compensation Exchange TM Success in the hotel, chain restaurant, retail, gaming and real estate industries is based on the ability to attract, retain and motivate superior talent. The most tangible way to accomplish this objective is by linking pay and performance. HVS Executive Search offers an integrated approach to compensation management through our intimate knowledge of the hospitality industry. The HCE Hospitality Compensation Exchange TM is the largest industry forum for the exchange of compensation and benefit information. Advisory Services Compensation analysis and programming of base salary, short and long-term incentives for all levels of the organizational structure, from line-level to senior executives and Board members; Performance measurement systems; Negotiation and drafting of senior executive employment contracts and severance agreements; Corporate governance with respect to executive and Board compensation; Expert witness, opinions and litigation support. Data Services 2009 Compensation Reports HCE compensation reports present salary and benefits data for executive committee and line level positions at hotels and senior management positions at corporate offices. They are client-defined reports designed to consider an unlimited number of parameters, positions, and questions. Confidentiality is the cornerstone of our business and protecting the reputation and data integrity of the participants is of critical importance. To that end, we only provide results in aggregate format. Annual Surveys HVS Executive Search also conducts annual salary and benefits surveys in specific markets. These reports, conducted each year, present salary and benefits data for senior management positions at hotel and corporate level. Current Annual HCE Reports are available for the London and Middle East hotel markets. HVS Executive Search London has recently conducted HCE surveys in the following markets: Abu Dhabi Amman Athens Beirut Cairo Dubai Germany Jeddah Lisbon & Algarve London Makkah Moscow Paris Prague Riyadh Scotland South Africa St. Petersburg Tuscany You can order the reports online at: or contact our compensation experts at HVS Executive Search - London: Christopher Mumford Pooja Vir Senior Associate Tel: Tel: cmumford@hvs.com pvir@hvs.com For more information, please visit
6 General Manager Position General Manager Minimum 25th Percentile 50th Percentile 75th Percentile Maximum Salary & Bonus Annual Gross Base Salary 110, , , , ,956 Target Bonus (%) 30% 30% 35% 44% 50% Actual Last Paid Bonus 36,631 39,900 50,000 68, ,037 Last Paid Bonus As % of Base Salary 22% 26% 29% 39% 62% Base + Bonus 177, , , , ,993 Private Pension Plan Annual Employer Contribution (%) 1% 3% 9% 10% 10% o One of the participating hotels has an expatriate General Manager. o One of the General Managers is a Regional Vice President with responsibility for 4 European. BENEFITS & ALLOWANCES HOUSING & LIVING o 50% of the General Managers live on property. o Only one of the General Managers living in private accommodation receives an annual housing allowance. o 50% of the General Managers living in private accommodation receive a living allowance towards utilities. SCHOOLING o One of the General Managers receives an annual schooling allowance. CAR o 63% of the General Managers have a company car however the value has not been specified. TRAVEL o One of the local General Managers receives annual flights to his home country. MEDICAL o 63% of the General Managers receive private medical insurance including family cover. OTHER BENEFITS Some of the other benefits offered include: o Collective Accident Insurance; o Limited Personal Property Insurance; o Dry Cleaning and laundry; o Parking; o Entertainment and Personal Account privileges. 6
7 Appendix A Survey Group Berlin Adlon Hotel Kempinski, Berlin Regent Berlin Rocco Forte Hotel de Rome, Berlin Frankfurt InterContinental Frankfurt Rocco Forte Villa Kennedy, Frankfurt Rocco Forte Hotel de Rome, Berlin Hamburg Fairmont Hotel Vier Jahreszeiten, Hamburg Munich Hotel Vier Jahreszeiten Kempinski Munich Rocco Forte Hotel Charles, Munich Mandarin Oriental Munich Data current as of December 2008 Date: 22 nd December
8 Appendix B Position Description General Manager The hotel s General Manager Reports to hotel corporate officers or hotel owner. The position holds overall responsibility for the hotel s property management and profitability. 8
9 HVS Executive Search - Offices LONDON Christopher Mumford 7-10 Chandos Street London, W1G 9DQ United Kingdom +44 (20) cmumford@hvs.com NEW YORK Keith Kefgen President HVS Executive Search 369 Willis Avenue Mineola New York (516) ext 220 kkefgen@hvs.com MOSCOW Tatiana Veller 31 B. Yakimanka Str. office 315 Moscow, (499) tveller@hvs.com NEW DELHI Manav Thadani 6th floor, Tower C, Bldg. No. 8 DLF Cyber City, Phase II Gurgaon , India +91 (124) mthadani@hvs.com HONG KONG Mark Keith 1-2F, 24 Sai Kung Tai Street Sai Kung, Hong Kong mkeith@hvs.com 9
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