Another executive in the chemical industry, who accepted a net salary of EUR12,800 per month and an annual bonus of 30%, which translates into an additional EUR46,000, ranks second in top of best paid managers who have changed their jobs over this year.
“In the first half of this year the business went surprisingly well. We are optimistic and hope the second half of 2012 will be similarly good,” says Roxana Pana, partner within executive search company Stein&Partner with turnover of almost EUR330,000 last year.
An executive who took over as managing director in the IT&C industry and is earning a net salary of EUR12,800 per month ranks third in top of best paid managers who have changed their jobs this year.
Five projects per year
But a large part of local headhunters had significantly fewer contracts than in the previous years, on average five recruitment contracts for positions of CEO or board executive, managing to keep their businesses afloat.
“2011 was very good in terms of projects, but for 2012 we expect a slight decline of the business,” says Oana Ciornei, managing partner of executive search company Amrop Romania, which ended last year with turnover of over EUR500,000. Ciornei says this year investments were suspended because of the economic situation, and that it affected the company quite heavily.
“For instance we had to start recruitment for 9 jobs for a client, but after recruiting for one job, the client put the project on hold,” she explains.
Ranking next is a retail vicepresident of a local bank, who earns a fixed salary of over EUR9,600 net per month, aside from bonuses and other benefits. The same goes for a general manager of a company in the industrial sector. General managers in pharma, industry and cosmetics changed their jobs for EUR8,300 net per month.
Executive search market has become a non-market
Among the best-paid managers who have changed their job this year are also a human resources manager and a sales manager in retail, who earn almost EUR5,000 net per month. But some of the headhunters say their projects this year can be considered market anomalies.
“There have been so few projects that the executive search market has become a non-market. (…) Many people contact us to ask for advice or in order to be considered for future projects, but when we interview them we realize that in fact they are not willing to take on new challenges,” says Dana Patrichi, managing partner of executive search firm Alexander Hughes. At the same time, very good candidates are retained at the companies where they are working.
“2012 has been weaker than last year, although in the first half of the year we had projects in sectors such as financial services and FMCG,” says George Butunoiu, one of the best-known headhunters on the local market, who runs a business with turnover of EUR300,000 last year.
Consultants say the most sought after positions have been for managers of commercial departments and there have been few requests for general manager jobs. On average a headhunter has 5 recruitment projects per year, as opposed to peak years, when there used to be as many as 40 projects (not just for general managers, but also for members of the board).
Local headhunters share a EUR6 million market, and place 200 top executives per year. On average a headhunter earns between EUR10,000 and EUR30,000 per year from placing an executive, i.e. between 28% and 33% of the value of the annual package of the manager placed. If the placed manager has a very high salary package, the headhunter can earn even more.
(English version by Daniela Stoican)