A new report shows what CEOs and other senior executives get paid as part of their short-term incentive bonuses.
PwC’s latest executive director’s remuneration trends report highlights a degree of hypocrisy involved with rewarding executives that work for JSE listed companies – where salaries increase in sectors where returns have dropped.
The report shows that the pay spectrum across the JSE, the median salary for executives has increased by 12% between 2014 and 2015 to R3.7 million, where CEOs saw the median salary jump by 10.7%, to R4.6 million, with the upper quartile seeing an 8% increase to R7.7 million.
As part of this pay package, executives are often paid out a performance bonuse based on short-term targets.
Short-term incentives (STIs) are annual incentives intended to compensate executives for achieving the company’s short-term business strategy based on achievement of goals set by the board’s compensation committee.
These goals vary depending on the type and maturity of the business, particular company strategy, market conditions and other factors.
PwC noted that in global markets, it is becoming increasingly more common for companies to cap bonus pay to 100% of an exec’s guaranteed salary – this is not in effect in South Africa.
As such, executives have seen their short-term incentive pay increase by double digits (even triple digits in some cases) over the past year.
The tables below detail what South African CEOs, CFOs and Executive Directors get paid in STIs across large, medium and small cap companies.
|Company||CEO STI (R’000)||YoY % Change||CFO STI (R’000)||YoY % Change||ED STI (R’000)||YoY % Change|
|Large cap||14 259||16%||6 595||64%||4 584||69%|
|Medium cap||6 567||46%||2 079||6%||4 444||182%|
|Small cap||1 320||-14%||801||2%||780||-3%|