US acquisitions should not raise UK salaries

Most
HR directors believe UK companies should not raise local executive salaries
after making a US acquisition.

HR
professionals discussed the issue at a Mercer seminar, which examined some of
the key issues that arise when a British company takes over a US company.

While
it maybe tempting to increase UK salaries inline with US pay packets after an
acquisition,  88 per cent of HR
professionals at the conference felt executive salaries in Britain should stay
in line with the UK market, and not rise to American levels.

●
87 per cent believed transaction bonuses should not be awarded to UK executives
involved in a US acquisition

●
58 per cent felt there should be no increase in the potential bonus for UK
executives

●
86 per cent thought US executives should have performance conditions imposed on
their share option plan

www.mercer.com

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By Ross Wigham