New data from PwC finds that the average total guaranteed package (TGP) for chief executive officers of the largest companies on the JSE was nearly R25 million over the last year.
The latest findings comes from PwC’s 10th edition of the Executive directors: Practices and remuneration trends report, broken down, equates to pay of nearly R100,000 every day (looking at 250 working days).
Information was extracted from the annual reports of 359 (2017: 360) actively trading companies listed on the Johannesburg Stock Exchange (JSE) during the 2017 reporting period, which had a total market capitalisation of R14.5 trillion (2017: R14.0 trillion), the auditing and advisory firm said.
The data used in the report was drawn from information publicly available for the 12-month reporting period ended 30 April 2018 (the 2017 reporting period).
PwC noted that the dominant sector is industrials (34.5%), followed by services (25.7%), financial services (21.1%), and basic resources (17.4%).
As at 30 April 2018 there were 1,144 (2017: 1,174) executive directors appointed to active JSE-listed companies. There were 342 CEOs (2017: 355), 325 CFOs (2017: 310) and 477 executive directors (2017: 509) in office at that date.
The median age of an executive director is 54, PwC noted, while board tenure for executive directors serving on the JSE for reporting periods 1994 to 2018 is 4.6 years.
The report reviewed the total TGP for all executives paid during the reporting period – median for CEOs up by 7.6% to R5.2 million – and includes an overview of short-term incentives paid to executives.
The report reviewed the executive pay of the JSE top-10 companies, which account for 60% of the JSE’s market cap. Since the sample is insufficient to calculate quartiles, only the average has been used. The average pay for CEOs is R24.9 million. For chief financial officers, the average is R15.1 million, and for executive directors R8.7 million.
Broken down across a typical 250-day work year, this means that the average executive at a JSE-listed company (all companies) earns between R8,590 and R24,160 a day.
CEOs earn between R12,540 and R30,790 a day; CFOs earn between R7,600 and R18,600 a day; and executive directors earn between R7,940 and R16,920 a day.