According to an internal Neom document, prominent executives at Saudi Arabia’s megadevelopment Neom are paid almost $1.1 million annually. This illustrates how the kingdom is utilizing big salaries to entice international talent to Crown Prince Mohammed bin Salman’s national transformation agenda.
The most ambitious project in Saudi Arabia is called Neom, and it is just one of several new businesses and real estate developments established to support Prince Mohammed’s social and economic changes.
To lead new industries—tourism, technology, and entertainment—that were previously essentially nonexistent in the country, the kingdom is hiring international executives.
The recruitment of foreign experts is meant to kick-start Prince Mohammed’s plan to diversify the economy of the biggest oil exporter in the world. The 37-year-old queen has reduced restrictions on women and made it simpler to travel to the country as part of that shift. In the interim, he has imprisoned people who disagree with his policies and repressed opposition.
An internal list of salaries for various roles includes information on the $1.1 million average salary for Neom’s c-suite executives. According to data from MyLogIQ LLC, which records public filings, the average remuneration for chief executives of the 3,000 largest listed U.S. corporations in 2021 will be $830,000.
According to the data, chief financial officers often make $486,000, and chief marketing officers make $416,000, which is more than twice what American c-suite-level executives typically earn.
After bonuses and other incentives, the total salary for American c-suite executives can also approach millions of dollars. According to those familiar with the project, the basic pay at Neom is an average of $1.1 million, and employees also receive bonuses.
According to a Neom marketing presentation seen by The Wall Street Journal and persons familiar with the project’s internal structure, the senior leadership team of Neom is made up of about 20 Saudis and foreigners with experience in financial services, energy, marketing, and media.
These individuals include Peter Terium, a former CEO of the German energy company RWE AG who is currently in charge of Neom’s energy, water, and food sectors; Vishal Wanchoo, a former president and CEO of General Electric Co. for South Asia who is currently in charge of Neom’s manufacturing sector; and Tim Shorrocks, the company’s chief marketing officer and a former director at Amazon Web Services. Joseph Bradley, a former executive of Cisco Systems Inc., is in charge of technology and digital at Neom.
According to recruiters, one of Saudi Arabia’s main draws for foreign workers is the possibility of keeping your full paycheck because the country has no income taxes. In a once-closed nation that is increasingly opening up socially and economically, many workers are lured to the concept of starting completely new businesses and sectors.
“Needless to say that building a 100% renewable energy system from scratch and the largest green hydrogen plant in the world is more of a motivator than the actual salary paid,” Mr. Terium told the Journal.
Neom and the other executives named in this story didn’t respond to requests for comment. On its website, the project says it “is all about connecting the brightest minds in the world to achieve the dream of building a better future.”
Saudi Arabia is pushing for foreign expatriates at a time when, despite slowing economic development, the global labor market is still tight and unemployment is near multiyear lows. Although Neom is the biggest and most well-known of the kingdom’s development projects and new businesses, each is vying for foreign talent.
For foreign white-collar professionals, Saudi Arabia competes with its neighboring United Arab Emirates, which has attracted talent away from more established centers like Hong Kong and Singapore since the epidemic.
According to the list of roles examined by the Journal, executive directors at Neom, a level beneath senior executives, are paid an average compensation of $660,000.
According to the list, directors at Neom receive an annual salary of $270,000. According to a list from last year, managers make $130,000, and senior managers $193,000. According to Neom’s recruitment page, managers and senior managers typically have two to eight years of experience.
Neom was originally declared by Prince Mohammed, who represents his father as ruler, in 2017. The country’s sovereign wealth fund has pledged billions of dollars to support the initiative. Neom is preparing Champagne and wine bars at an opulent island resort, a first for the monarchy where alcohol is prohibited. This is a symbol of the influence the crown prince hopes the project will have on the country.
According to the Journal, Neom has so far had difficulty keeping staff because of the slow advancement and combative workplace environment.
“I drive everybody like a slave…When they drop down dead, I celebrate. That’s how I do my projects,” Neom’s Chief Executive Nadhmi al-Nasr said in a meeting, according to a recording heard by the Journal. Mr. Nasr is a former executive at oil giant Saudi Aramco.
Requests for a response to Mr. Nasr’s remarks were unanswered by Neom.
Mr. Nasr’s deputy at Neom is Rayan Fayez, a former CEO of one of the largest banks in Saudi Arabia. The Journal was unable to ascertain the two leaders’ salaries.
Neom’s entry-level salary is roughly $54,000, indicating the initiative is more ready to pay up for workers with years of industry experience than for those performing lower-level tasks.
In contrast, salaries for recent graduates have increased on Wall Street and at prestigious consulting firms in recent years, with some of these graduates entering positions paying $100,000 in the United States. 79 jobs, ranging from telecom engineer to fashion investment manager to head of banking, are now being advertised by Neom on its website.
According to those familiar with the Neom hiring procedure, the project now offers a wage based on a candidate’s former employer’s compensation, meaning employees in comparable tasks may receive significantly different salaries depending on the nations from which they are hired.
According to those familiar with the project, there are further financial advantages to the project’s distant northwest Saudi Arabia location, where staff lives in temporary camps. Employees live in cottages resembling trailer parks and are fed at a canteen, so their living expenses are covered and their take-home pay is low.
