To recruit and retain highly qualified staff, the World Bank Group has developed a compensation and benefits system designed to be internationally competitive, to reward performance, and to take account of the special needs of a multinational and largely expatriate staff. The Bank Group's staff salary structure is reviewed annually by the Executive Board and, if warranted, adjusted on the basis of a comparison with salaries paid by private financial and industrial firms and in representative public sector agencies in the U.S. market. After analyses of updated comparator salaries, the Board approved an average increase in the salary structure of 3.9 percent for fiscal 2006, effective July 1, 2005, for Washington-based staff (see table).

Executive Management Remuneration

Reflecting the responsibilities of the various management positions, the salary of the President, effective July 1, 2005, was $391,440.¹ The salaries of the Managing Directors are set within the K range indicated in the table.²

Executive Board Remuneration

Upon the recommendation of the Board of Governors' Committee on the Remuneration of Executive Directors, the Governors approved the remuneration of Executive Directors and their Alternates effective July 1, 2005, to be as follows: the remuneration of Executive Directors is $204,400; the remuneration of Alternate Executive Directors is $176,810.³

1. In addition, a supplemental allowance of $70,070 is paid to cover expenses. The allocation of remuneration across salary and allowance was changed in June 2005, with no increase in the combined remuneration, in effect since July 1, 2004. Effective July 1, 2005, the remuneration was adjusted by the May–May Consumer Price Index for the Washington metropolitan area (4 percent).

2. No supplemental allowance is paid to Managing Directors.

3. These figures do not apply to the U.S. Executive Director and Alternate Executive Director, who are subject to U.S. congressional salary caps.