Meet the retail bosses who earn around R70,000 a day

Listed retail group Clicks has published a trading statement, reporting a stronger than expected performance in the second half of its 2019 financial year.

The group told shareholders to expect headline earnings to jump between 15% and 18%, when it reports its full year financials towards the end of October.

Clicks is one of the few listed retailers in South Africa that has seen a stronger performance in what has become an incredibly challenging economic environment – particularly around consumer spending.

Woolworths recently presented its annual results, showing muted profit growth of 2.5%, driven largely through its food segment – while Pick n Pay fared better in its annual results earlier in the year, seeing profits jump 7.8%.

On the other side of the spectrum, Shoprite has suffered in the current economic climate, seeing profits fall by over 18% in the year, while Massmart posted its first loss in 20 years.

Executive pay

Despite the mixed results in the retail sector, chief executives in the space are still very well paid.

In FY 2018, former Clicks CEO David Kneale (who fully stepped down from the company at the end of August 2019) took home R70 million for the year – however, this was largely due to the payout of his long-term incentive scheme.

The second top-earner in the retail space is Pick n Pay’s chief executive, Richard Brasher, who earned R32.5 million for the year.

In terms of basic salaries, the likes of Woolworths’ Ian Moir and Shoprite’s chief executive Pieter Englebrecht were the biggest earners, with R18.9 million and R16.1 million, respectively.

Ignoring bonuses and benefits paid out, Moir earned R51,800 per day (split across 365 days) – compared to Kneale’s R27,150 per day. These figures could be much higher, considering there are around 261 work days in a year.

The table below outlines how South Africa’s retail bosses got paid in the latest available financial year (2018 and 2019, as indicated).

Retail group CEO Year Salary ZAR Per day Without bonuses
Clicks David Kneale* 2018 R69.7 million R190 950 R27 150
Pick n Pay Richard Brasher 2019 R32.5 million R88 980 R27 780
TFG Anthony Thunstöm 2019 R23.2 million R63 520 R17 170
Woolworths Ian Moir 2019 R23.0 million R63 130 R51 800
Shoprite Pieter Engelbrecht 2019 R21.3 million R58 280 R44 190
Dis-Chem Ivan Saltzman 2019 R12.8 million R35 170 R34 190
Massmart Guy Hayward 2018 R12.8 million R35 060 R17 380
Spar Group Graham O’Connor 2018 R11.4 million R31 180 R16 030
Average R10.8 million R70 780 R29 460

* Kneale stepped down as Clicks CEO at the end of August 2019

The graph below outlines how the total pay is split between basic salary and bonuses and benefits.


Read: Woolworths boss scores big payday

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Meet the retail bosses who earn around R70,000 a day