South African bankers' living standards the 'best in the world'

South Africa has finally overtaken the United States in at least one respect. Its top bankers and chief executives have the highest disposable income and can boast the best quality of life, according to a report just issued by PE Corporate Services (Pecs), a South African management consultancy.

"It is the first time in thirty years or so that we have done the survey that South Africans have come out on top, streets ahead of their international counterparts," says Martin Westcott, managing director of Pecs. "They have gradually been rising through the ranks, but this year they have the highest level of net wealth."

The countries next best off are Namibia, the United Kingdom and Germany, while Nigeria is at the bottom.

The economic slowdown in the US and the weakness of the dollar have pushed American Ceos down the rankings. The strong rand, by contrast, has helped South Africa, along with low inflation and the return to positive growth after the short-lived recession. The Pecs survey calculates the purchasing power of net disposable income after taking into account factors like taxation, national insurance and living costs such as housing, food and transport.

Top bankers' remuneration packages in South Africa are lower in absolute terms than their US or EU counterparts, but in relative terms their disposable income is much higher. "This is the real measure of how well-off you are and how good your quality of life is," says Westcott.

"Another positive for executives in the financial services sector is that salaries are likely to rise further, as the call for restraint clashes with the shortage of skills and the need to pay well in order to secure the best talent. Banks have a real dilemma there."

But anyone inspired by the above to go off immediately in search of a job in South Africa should wait.

The country has now virtually closed down for Christmas, which coincides with the summer holidays and is the equivalent of the August shutdown in Continental Europe.

Banks also have another, more substantial reason for not hiring this month. "If someone starts in December the bank has to pay their bonus in early 2011, these are the rules," says Phryne Williams, director of Capital Assignments, a specialist financial services recruitment firm. "So everyone has been putting their hiring on hold , especially the international banks that do not want to have to buy people out of their bonuses. Activity will resume in 2011."