Salary increases for Canadian managers will barely keep up with inflation in 1998 and will be the lowest among Group of Seven countries, a recent survey suggests.

The good news about Canadian managers not being much further ahead tomorrow than today is that the smaller salary increases could attract businesses to Canada, said Leslie Sarauer, a principal with study authors William M. Mercer consultants.

But she acknowledged the relatively flat raises may also drive top managers away.

Canadian managers can expect salary increases of 2.2% to 3.1%, while the inflation rate is expected to be 1.8% to 2.6%, according to the study.

The managers' counterparts in other G7 countries are expected to receive salary increases about double their national rates of inflation, the study says.

Martin Harts, a partner at KPMG responsible for compensation practices, said thanks to free trade the pay scales between Canada and the U.S. should eventually level off.

Sarauer said 545 Canadian companies participated in the study.

She could not say what percentage were small-cap companies or blue chips, nor could she break the results down by industry.

	This Information System is provided by the University of Toronto Library and the G7 Research Group at the University of Toronto.
	Please send comments to: g8@utoronto.ca Revised: February 11, 1998.

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