According to the report by management consultancy Hay Group, managers from Britain rank behind the likes of China, Mexico, Hungry, Slovakia and Kenya in the international ‘real pay' stakes because of high taxes and a high cost of living.
And the competitiveness of UK management pay is not likely to improve in the foreseeable future: the country is braced for a range of potential tax increases in the Pre-Budget Report as the Government addresses the national debt.
Managers from oil-rich Gulf States top the management real pay table, with those from India and Bulgaria languishing at the bottom.
Mark Thompson, associate director, reward consulting at Hay Group UK, said: "Contrary to recent headlines about managers receiving generous salaries in recessionary times, UK managers are among the world's lowest-paid in real terms. UK firms must look carefully at how they manage their pay bill if they are to retain management talent."
The UK looks likely to slip further down the management spending power table in 2010 as the fallout from the recession continues to take its toll. The UK is forecasted to be the only major economy where managers will suffer a fall in disposable income.
The cost of living will be further inflated by the end of the temporary VAT reduction on 1 January. In addition, tax increases expected to be announced in the Pre-Budget Report will heighten the tax burden on UK managers - for example, changes to capital gains tax and taxes on pensions.
Thompson comments: "Looking ahead to 2010, tax rises announced in the Pre-Budget Report could further reduce disposable income for managers. The UK is the only major economy where pay is expected to fall in real terms, due to tax increases, economic uncertainty and increases to VAT."
In the Middle East, the Gulf States dominate the top of the management spending power table. Managers in Qatar are the world's best paid, followed by those in Kuwait, United Arab Emirates, Saudi Arabia and Oman.
However, the top 20 also features some surprising entrants from Eastern and Southern Europe and from Central and South America.
Romania is the highest-ranked European country, placed 8th in the global table, closely followed by Turkey in 9th position. Managers from Ireland (16th), Greece (17th) and Portugal (20th) are all among the world's best paid.
Chile (6th), Panama (7th), Costa Rica (12th) and Brazil (15th) are the highest-ranked South American countries.
Other surprises in the top 20 include Egypt (13th) and South Africa (14th).
The US is ranked 29th, with Japan (34th) and Germany (36th) further behind.
Managers in France (47th), Belgium (49th), Sweden (50th) and Finland (51st) find themselves towards the bottom of the table, which is propped up by India (56th) and Bulgaria (55th).
