A recent report by financial services company, PwC, revealed the pay of executives of companies listed on the Johannesburg Stock Exchange (JSE).
The report noted that as at 30 April 2015 there were 355 active JSE-listed companies with a combined market capitalisation of R11.926 trillion.
It found that the median total guaranteed pay (TGP) among CEOs in 2014 was R4.13 million.
Chief Executive Officers
| CEO – All of JSE | 2013 | 2014 | % |
|---|---|---|---|
| Upper Quartile | R6.624m | R7.135m | 7.7% |
| Median |
R3.943m | R4.130m | 4.8% |
| Lower Quartile | R3.002m | R3.064m | 2.1% |
Chief Financial Officers
| CFO – All of JSE | 2013 | 2014 | % |
|---|---|---|---|
| Upper Quartile | R3.843m | R4.190 | 9.0% |
| Median |
R3.422m | R3.656m | 6.8% |
| Lower Quartile | R1.901m | R1.968m | 3.5% |
Executive directors
| Exective directors – All of JSE | 2013 | 2014 | % |
|---|---|---|---|
| Upper Quartile | R3.416m | R3.703m | 8.4% |
| Median |
R2.429m | R2.5730m | 5.9% |
| Lower Quartile | R1.911m | R2.011m | 5.2% |
The average inflation in SA for 2014, was 6.1%.
The report found that six CEOs on the JSE, earned above R25 million in 2014, while 13 earned between R20-R25 million, and just under 120 received a TGP of between R5-R10 million.
Basic resources
Basic resources include mining (8.8%), forestry (7.5%), and industrial metals and mining (2.7%).
PwC said that only six basic resources companies are listed among the large cap companies on the JSE. The median TGP for CEOs of large-cap basic resource companies is R21.6 million, and the median TGP for executive directors is R15.1 million.
| Basic Resources | CEO | CFO | EC |
|---|---|---|---|
| Large cap |
R21.67m | R11.189m | R15.112m |
| Medium cap |
R7.332m | R5.018m | R3.390m |
| Small cap |
R1.533m | R1.530m | R1.828m |
Financial services
There are 90 financial services companies listed on the JSE. Their aggregate market capitalisation is R2.8 billion, PwC said.
Most of the split is between banks (89.8%), financial services (22.8%), and services companies (21%).
| Financial Services | CEO | CFO | EC |
|---|---|---|---|
| Large cap |
R7.006m | R4.292m | R3.882m |
| Medium cap |
R3.483m | R2.129m | R2.401m |
| Small cap |
R2.100m | R1.533m | R1.530m |
Industrials
There are 99 companies in this sector listed on the JSE, 36% of which are located in the personal goods sector, while 25.5% are in the food sector, and 14.5% are in the technology sector.
Additional industrial sectors include chemical, household, healthcare equipment, oil and gas, and manufacturing.
The median TGP for large-cap CEOs at industrial organisations showed a modest increase – R13.9 million – after a substantial decline in 2012 of R10 million.
| Industrials | CEO | CFO | EC |
|---|---|---|---|
| Large cap |
R13.924m | R6.419m | R4.357m |
| Medium cap |
R5.741m | R3.632m | R3.901m |
| Small cap |
R3.345m | R2.002m | R2.007m |
Services
There are 54 companies listed in the services sector on the JSE, among which five
subsectors dominate including healthcare, media, retail, telecommunications, travel and leisure.
| Services | CEO | CFO | EC |
|---|---|---|---|
| Large cap |
R7.287m | R3.590m | R3.001m |
| Medium cap |
R4.601m | R3.844m | R2.567m |
| Small cap |
R3.534m | R1.997m | R2.167m |
As at 30 April 2015 there were 1,180 executive directors at JSE-listed companies, an increase of 3.1% on the previous year, PwC said.
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