Neom is the most ambitious project in Saudi Arabia and one of dozens of real-estate development and new companies established to drive Prince Mohammed’s social and economic reforms. The state is recruiting foreign officials to lead new industries – tourism, technology and entertainment – that, until recently, were largely non-existent in the state.
The promotion of international talent aims to launch Prince Mohammed’s plan to diversify the economy of the world’s largest oil exporter. As part of that change, the 37-year-old royal eased restrictions on women and eased state travel. Meanwhile, he suppressed dissent and imprisoned those opposing his agenda.
The $1.1 million median salary of NEOM’s C-suite level executives is detailed in an internal list of compensation for various positions. This compares with a median salary of $830,000 in 2021 for the CEOs of the 3,000 largest listed U.S. companies, according to data from MyLogIQ LLC, which tracks public filings. Data shows that this is typically more than double that of US C-suite level executives, with chief financial officers earning $486,000 and chief marketing officers earning an average of $416,000.
Total compensation for American C-suite level executives can reach millions of dollars, even after bonuses and other incentives. People familiar with the project said the average figure at $1.1 million is a base salary at Neom and people get a bonus as well.
According to a Neom marketing presentation seen by The Wall Street Journal and people familiar with the project’s internal setup, Neom’s senior leadership team is made up of about 20 Saudis and foreigners with expertise in financial services, energy and marketing and media.
These include Peter Terriem, former chief executive officer of German energy company RWE AG and now head of Neom’s energy, water and food sectors; Vishal Wanchoo, former president and chief executive of South Asia at General Electric Co., now runs manufacturing in Neom; and Tim Shoroux, chief marketing officer, former director of Amazon Web Services. Former Cisco Systems Inc. Executive Joseph Bradley is Head of Technology and Digital at Neom.
One of Saudi Arabia’s biggest attractions for expatriate workers, recruiters say, is the prospect of taking home your entire paycheck: The kingdom has zero income taxes. Many employees have been drawn to the idea of creating entirely new companies and industries in a once closed country that is now opening up socially and economically.
“Needless to say that building a 100% renewable energy system from scratch and having the largest green hydrogen plant in the world is more motivating than paying a real salary,” Mr. Terriam told the Journal.
Niom and the other officials named in this story did not respond to requests for comment. On its website, the project says it is “about connecting the world’s brightest minds to achieve the dream of building a better future.”
Saudi Arabia’s push for international migrant workers coincides with a global labor market that, despite slowing economic growth, remains tight with unemployment at multi-year lows. The state has launched dozens of development projects and new companies, and while NEOM is the largest and highest profile, each is fighting for rent from abroad.
Saudi Arabia, too, is in competition with neighboring United Arab Emirates for international white-collar workers, which has distanced itself from more established centers such as Hong Kong and Singapore since the pandemic.
Executive directors at Neom, one level below senior executives, are paid an average salary of $660,000, according to a list of positions viewed by the Journal. The list shows that the directors, which include dozens of people at Neom, are paid $270,000 annually. According to last year’s list, senior managers get $193,000 and managers get $130,000. Managers and senior managers have more than two to eight years of experience, according to Neom’s careers website.
Prince Mohammed, who rules on his father’s behalf, first announced Neom in 2017. The project is backed by a pledge of billions of dollars from the country’s sovereign-wealth fund. In a sign of the impact the prince wants the project to have on the state, Neom is planning a champagne and wine bar at a lavish island resort, a first for the state where alcohol is banned.
The Journal reports that so far, however, Neom has struggled to retain employees, many of whom have become disillusioned with the slow progress and war culture.
“I drive everyone like a slave… When they die, I celebrate. That’s how I do my projects,” Nadmi al-Nasr, chief executive of Neom, said at a meeting , according to a recording narrated by the Journal. Mr Nasr is a former executive at oil giant Saudi Aramco.
NEOM did not respond to requests for comment on Mr. Nasr’s comments.
Ryan Faiz, former CEO of one of Saudi Arabia’s largest banks, is Nasr’s deputy at Neom. The Journal could not determine how much the two leaders were compensated.
The entry salary for an employee at Neom is approximately $54,000, indicating that the project is more willing to pay for employees with years of expertise in industries than for those working at lower levels.
By comparison, salaries for fresh graduates have risen in recent years on Wall Street and blue-chip consulting firms, some of whom are moving into jobs that pay $100,000 in the US.
NEOM is currently advertising 79 jobs on its website ranging from Telecom Engineer to Fashion Investment Manager to Banking Head.
People familiar with the Neom recruitment process said the project now offers salaries based on a candidate’s pay at their previous employer, meaning there could be large differences in the pay of employees in similar roles from which they are recruited. Is.
The project’s location in Saudi Arabia’s far northwest, where workers live in temporary camps, has other financial benefits, people familiar with the project say. Accommodation is covered because employees live in trailer-park-style cabins and meals are provided in a canteen, meaning employees spend very little of their salary.