{"id":130226,"date":"2016-07-15T10:43:46","date_gmt":"2016-07-15T08:43:46","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=130226"},"modified":"2016-07-15T11:07:49","modified_gmt":"2016-07-15T09:07:49","slug":"this-is-what-ceos-and-other-top-executives-get-paid-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/130226\/this-is-what-ceos-and-other-top-executives-get-paid-in-south-africa\/","title":{"rendered":"This is what CEOs and other top executives get paid in South Africa"},"content":{"rendered":"

Executive salaries are\u00a0always a hot topic, especially in a country like South Africa where pay inequality rivals countries like the USA.<\/p>\n

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.<\/p>\n

Contrary to practices overseas, in South Africa total guaranteed pay (TGP) is paid regardless of the performance of the company.<\/p>\n

“The level of TGP is normally determined with reference to job grading and a job evaluation process having been carried out on the relevant job function. Affordability may be an added measure,” PwC said.<\/p>\n

For example, despite shares in the basic resources sector almost halving in the past year, CEOs and other executives saw salary increases almost across the board.<\/p>\n

PwC suggested and recommended that South African company boards follow the standards of international companies, and start factoring in company performance and value generation into executive remuneration decisions.<\/p>\n

Executive pay in South Africa<\/strong><\/p>\n

Looking at the pay spectrum across the JSE, the median salary for executives has increased by 12% between 2014 and 2015 to R3.7 million.<\/p>\n

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.<\/p>\n

Chief financial officers overall saw a drop in the median salary (-12.1%) to R3.4 million – but the upper quartile saw an 11% increase in total guaranteed packages to R4.6 million.<\/p>\n

The table below shows the median salaries of executives on the JSE, as well as the upper and lower quartiles.<\/p>\n

\"PWC<\/a><\/p>\n

Looking at the various sectors, executives in basic resources tend to get paid the most, with salaries reaching as high as R32.6 million in the upper quartile average.<\/p>\n

However this tends to apply only to large and medium-cap companies. In lower-cap companies, executives in the service sector get paid the highest median salaries.<\/p>\n

The tables below show the median salaries for JSE executives in large cap, medium cap and small cap companies across the listed industries. Salaries for AltX-listed companies is also included.<\/p>\n

Large-cap companies<\/strong><\/p>\n

\n
\n\n\n\n\n\n\n
Sector<\/th>\nMedian CEO pay (R’000)<\/th>\nMedian CFO pay (R’000)<\/th>\nMedian Executive Director pay (R’000)<\/th>\n<\/tr>\n
Basic Resources<\/td>\n21 959<\/td>\n10 792<\/td>\n15 334<\/td>\n<\/tr>\n
Financial Services<\/td>\n7 050<\/td>\n4 592<\/td>\n4 076<\/td>\n<\/tr>\n
Industrials<\/td>\n14 759<\/td>\n7 061<\/td>\n5 326<\/td>\n<\/tr>\n
Services<\/td>\n7 724<\/td>\n3 913<\/td>\n3 301<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Medium-cap companies<\/strong><\/p>\n

\n
\n\n\n\n\n\n\n
Sector<\/th>\nMedian CEO pay (R’000)<\/th>\nMedian CFO pay (R’000)<\/th>\nMedian Executive Director pay (R’000)<\/th>\n<\/tr>\n
Basic Resources<\/td>\n7 669<\/td>\n5 119<\/td>\n3 592<\/td>\n<\/tr>\n
Financial Services<\/td>\n7\u00a0050<\/td>\n2 266<\/td>\n2 593<\/td>\n<\/tr>\n
Industrials<\/td>\n5 969<\/td>\n3 775<\/td>\n4 018<\/td>\n<\/tr>\n
Services<\/td>\n4 969<\/td>\n3 998<\/td>\n2 849<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

Small-cap companies (including AltX)<\/strong><\/p>\n

\n
\n\n\n\n\n\n\n\n
Sector<\/th>\nMedian CEO pay (R’000)<\/th>\nMedian CFO pay (R’000)<\/th>\nMedian Executive Director pay (R’000)<\/th>\n<\/tr>\n
Basic Resources<\/td>\n1 594<\/td>\n1 652<\/td>\n1 901<\/td>\n<\/tr>\n
Financial Services<\/td>\n2 174<\/td>\n1 642<\/td>\n1 607<\/td>\n<\/tr>\n
Industrials<\/td>\n3 510<\/td>\n2 352<\/td>\n2 147<\/td>\n<\/tr>\n
Services<\/td>\n3 852<\/td>\n2 097<\/td>\n2 254<\/td>\n<\/tr>\n
AltX<\/td>\n1 931<\/td>\n1 356<\/td>\n1 076<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

More on salaries<\/h3>\n

These are the cars you can afford with your salary in South Africa<\/a><\/strong><\/p>\n

What house you can afford to buy with your monthly salary in SA<\/a><\/strong><\/p>\n

How your salary will change as you gain more experience in SA<\/a><\/strong><\/p>\n

Biggest salary increases in South Africa in 2016<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

A new report shows that CEO and executive pay continues to climb in South Africa – even in sectors where revenues and shareholder value has declined.<\/p>\n","protected":false},"author":10,"featured_media":74324,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121,9880],"tags":[26,2407],"class_list":["post-130226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-wealth","tag-headline","tag-pwc"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/130226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=130226"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/130226\/revisions"}],"predecessor-version":[{"id":130240,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/130226\/revisions\/130240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/74324"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=130226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=130226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=130226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}