www.hvs-executivesearch.

com

2008
TM

Germany General Manager

Salary & Benefits Report

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Dear Industry Executive,

Welcome to the HCE Hospitality Compensation ExchangeTM, the hotel industrys
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 firms compensation consulting practice is
the HCE Hospitality Compensation ExchangeTM. 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.

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Data Analysis
Data is presented in standard percentile format (minimum, 25th percentile, 50th
percentile, 75th 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 75th 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
Managing Director
Tel: +44 20 7878-7740
Mbl: +44 7976 972 448
Email: cmumford@hvs.com

&

Pooja Vir
Senior Associate
Tel: +44 20 7878-7756
Mbl: +44 7726 479 339
Email: pvir@hvs.com
3

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Table of Contents

General Manager Position

Appendix A Survey group

Appendix B Position description

HVS Executive Search Worldwide Offices

HVS Executive Search | Hospitality Compensation ExchangeTM

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 ExchangeTM 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
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.

2009

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: http://www.hvs-executivesearch.com/CompensationConsulting/

or contact our compensation experts at HVS Executive Search - London:
Christopher Mumford
Managing Director
Tel: +44 20 7878 7740
Email: cmumford@hvs.com

Pooja Vir
Senior Associate
Tel: +44 20 7878 7756
Email: pvir@hvs.com

For more information, please visit www.hvs-executivesearch.com

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General Manager Position

General Manager
Salary & Bonus
Annual Gross Base Salary
Target Bonus (%)
Actual Last Paid Bonus
Last Paid Bonus As % of Base Salary
Base + Bonus
Private Pension Plan
Annual Employer Contribution (%)

o
o

Minimum

25th Percentile

50th Percentile

75th Percentile

Maximum

110,000
30%
36,631
22%
177,800

140,000
30%
39,900
26%
197,931

172,115
35%
50,000
29%
217,000

194,038
44%
68,255
39%
264,280

225,956
50%
139,037
62%
364,993

1%

3%

9%

10%

10%

One of the participating hotels has an expatriate General Manager.

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.

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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: 22nd December 2008

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Appendix B Position Description

General Manager

The hotels General Manager Reports to hotel corporate officers or hotel owner. The position holds overall
responsibility for the hotels property management and profitability.

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HVS Executive Search - Offices

NEW YORK
Keith Kefgen
President HVS Executive Search
369 Willis Avenue
Mineola
New York 11501
+1 (516) 248-8828 ext 220
kkefgen@hvs.com

LONDON
Christopher Mumford
Managing Director
7-10 Chandos Street
London, W1G 9DQ
United Kingdom
+44 (20) 7878-7740
cmumford@hvs.com
MOSCOW
Tatiana Veller
Managing Director
31 B. Yakimanka Str.
office 315
Moscow, 119180
+7 (499) 230 0117
tveller@hvs.com

NEW DELHI
Manav Thadani
Managing Director
6th floor, Tower C, Bldg. No. 8
DLF Cyber City, Phase II
Gurgaon 122 002, India
+91 (124) 461 6000
mthadani@hvs.com

HONG KONG
Mark Keith
Managing Director
1-2F, 24 Sai Kung Tai Street
Sai Kung, Hong Kong
+852 2791 58681
mkeith@hvs.com