What do CEOs think about their pay?

Former Naspers CEO and current chairman Koos Bekker is believed to have raked in as much as R21.8 billion in a sale of shares he accumulated in the company over the years.

According to a report by Moneyweb, Bekker sold 11.7 million of his 16.4 million shares in the media giant between 2014 and March this year.

Bekker agreed to a deal in which he received no salary, bonuses, or pension, and could be fired at 24 hours notice with no compensation as CEO. In return, he received generous options in Naspers shares.

Speaking to News24 in March, Bekker said that not working for a salary is a big risk.

A recent study conducted by financial services company, PwC notes that the debate around executive remuneration has focussed on whether shareholders are getting what they want, whether the current levels of executive remuneration are acceptable to society and whether remuneration committees are doing their job properly.

It asked over 1,100 senior executives from 43 countries about their views on pay and incentives, and found that most are far less risky when it comes to financial rewards for their work.

Only a minority – 28% – of executives would choose to gamble on a potentially higher bonus versus fixed pay if they had a choice.

Two thirds more respondents would prefer a less complex but smaller and more certain reward.

Half of executives felt that getting paid more than their peers was more important
than getting paid more in absolute terms.

A quarter felt that a higher payment was more important than the relative payment compared to their peers.

When there is uncertainty about whether a payment will be received, executives heavily
discount the value in their minds. Discounts can equal 50% less incentive pay, and 33% less total compensation.

On average executives would take a 28% pay cut for their dream job, PwC said.

More on CEO pay in SA

How much money top CEOs in South Africa earn

CEO pay vs performance in South Africa

Your salary vs the rest of the world

Working for no salary is high risk, high reward: SA billionaire

Naspers chairman rakes in billions of rands

 

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What do CEOs think about their pay?