PwC’s latest executive director’s remuneration and practices report shows the average salary of executives for JSE-listed companies in South Africa.
As at 28 April 2017, there were 1,174 (2015: 1,179) executive directors appointed to 360 active JSE-listed companies.
Included in this total were 355 CEOs, 310 CFOs and 509 executive directors.
PwC said that the age profile reflects that there is a slight downward trend, with a median age of 52 and an average slightly higher at 53.
Board tenure for executive directors serving on the JSE remains relatively short at 4.8 years as reflected for reporting periods 1994 to 2016.
The report reviews the total guaranteed package (TGP) for executives paid during the reporting period and includes an overview of short-term incentives paid to executives.
The average inflation in South Africa for the 2016 reporting period was 6.6%. Over this period, the average increase paid to junior workers was 16% while for executives this was 5.7%.
The median executive pay for all JSE executives was R3.9 million versus R3.69 million in 2015.
PwC said that for the first time, it reviewed the executive pay of the JSE top-10 companies which account for 60% of the JSE’s market cap.
The average executive pay for CEOs in this band is R24.6 million, while for CFOs the average is R13.8 million, and for EDs it’s R7.7 million.
AltX is an alternative public equity exchange for small and medium-sized companies operated in parallel with and wholly owned by the JSE Securities Exchange.
PwC pointed out that there were 46 actively trading companies listed on the AltX at its cut-off date.
“The AltX provides smaller companies with access to capital, while providing investors with exposure to fast-growing smaller companies in a regulated environment, PwC said.
The advisory firm’s data showed that the average small and medium-sized company chief executive was paid R2.1 million in 2016.
It found that the average salary increase was 8.6% during that year.