{"id":777996,"date":"2024-06-23T17:00:00","date_gmt":"2024-06-23T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=777996"},"modified":"2024-06-24T11:38:53","modified_gmt":"2024-06-24T09:38:53","slug":"meet-south-africas-millionaire-property-ceos-earning-r254000-a-day","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/777996\/meet-south-africas-millionaire-property-ceos-earning-r254000-a-day\/","title":{"rendered":"Meet South Africa\u2019s millionaire property CEOs \u2013 earning R254,000 a day"},"content":{"rendered":"\n<p>The five largest property companies listed on the Johannesburg Stock Exchange (JSE) have a combined market capitalisation of a staggering R119.9 billion, resulting in notable CEO paydays\u2014earning a collective R254,247 per day. <\/p>\n\n\n\n<p>As a CEO, you have to deal with a lot of stress and challenges. In South Africa, CEOs face unique circumstances that can make their job even tougher. <\/p>\n\n\n\n<p>The CEOs of companies operating in South Africa have to navigate a complex business environment.<\/p>\n\n\n\n<p>Economic conditions, political instability, and high levels of inequality pose significant obstacles for CEOs trying to lead their companies to success. <\/p>\n\n\n\n<p>In addition, CEOs in South Africa have to deal with operational challenges like fluctuating exchange rates, skills shortages, and unreliable infrastructure. <\/p>\n\n\n\n<p>These factors can hinder growth, increase costs, and put a lot of pressure on the CEO&#8217;s role. <\/p>\n\n\n\n<p>This is especially true for property CEOs in South Africa in 2024, as many of them are facing tough conditions.<\/p>\n\n\n\n<p>Growthpoint Properties, in its annual results, noted that South Africa&#8217;s property landscape has faced unprecedented challenges, including low domestic growth, volatile global markets caused by interest rates that remain higher for longer and rising geopolitical tension.<\/p>\n\n\n\n<p>Vukile Property CEO Laurence Rapp added that the cost of capital in the country is probably the biggest challenge facing property groups locally at the moment.<\/p>\n\n\n\n<p>He cited the company&#8217;s inability to make at least R5 billion of a potential R7 billion in acquisitions in South Africa work because of the cost of capital.<\/p>\n\n\n\n<p>Additionally, until interest rates started falling in South Africa and globally, Rapp said it was going to make more financial sense to invest offshore.<\/p>\n\n\n\n<p>The problem is that although interest rates are high around the world, they are comparatively higher in South Africa, which dilutes potential local acquisitions.<\/p>\n\n\n\n<p>Despite these challenges, these CEOs are still expected to deliver results and face intense scrutiny from various stakeholders, such as shareholders, employees, and government bodies.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>CEO pay<\/strong><\/p>\n\n\n\n<p>Considering the challenges faced by companies operating in South Africa, BusinessTech examined the top five JSE-listed companies by market capitalisation to determine their CEOs\u2019 salaries.<\/p>\n\n\n\n<p>To standardise the salaries in this article, the total remuneration amounts were converted to rand using the applicable exchange rate as of 20 June 2024.<\/p>\n\n\n\n<p>Total remuneration includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Guaranteed pay;<\/li>\n\n\n\n<li>Benefits;<\/li>\n\n\n\n<li>Short-term incentives;<\/li>\n\n\n\n<li>Long-term incentives.<\/li>\n<\/ul>\n\n\n\n<p>Surprisingly, the CEO of the third largest JSE-listed property company, Vukile Property, is the highest-paid on our list. The group reports a notable market cap of R18.7 billion.<\/p>\n\n\n\n<p>In 2023, Laurence Rapp, the CEO of Vukile Property, received a total compensation package of R23.2 million, which includes base salary, short-term incentives, cash bonuses, benefits, and long-term incentive plans.<\/p>\n\n\n\n<p>This works out to roughly R63,562 every day. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"715\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Laurence-Rapp-CEO-of-Vukile-Property-Fund-1024x715.jpg\" alt=\"\" class=\"wp-image-778027\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Laurence-Rapp-CEO-of-Vukile-Property-Fund-1024x715.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Laurence-Rapp-CEO-of-Vukile-Property-Fund-300x210.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Laurence-Rapp-CEO-of-Vukile-Property-Fund-768x536.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/06\/Laurence-Rapp-CEO-of-Vukile-Property-Fund.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Laurence Rapp, CEO of Vukile Property Fund.<\/em><\/figcaption><\/figure>\n\n\n\n<p>The second highest-paid CEO is Norbert Sasse of Growthpoint Properties, which is the biggest property company on the Johannesburg Stock Exchange (JSE). <\/p>\n\n\n\n<p>He earned R22.4 million or R61,370 per day. The third is Andrew K\u00f6nig (CEO of Redefine Properties), who earned R18.1 million or R49,589 per day.<\/p>\n\n\n\n<p>The second lowest-paid CEO among the top companies was Resilient Reit\u2019s Des de Beer, who earned R17.6 million or R48,219 per day.<\/p>\n\n\n\n<p>The lowest paid was Hyprop\u2019s Morn\u00e9 Wilken, who still earned a massive earned R11.5 million or R31,507 per day.<\/p>\n\n\n\n<p>The complete list of the top 5 JSE-listed property companies, showing their respective market caps and CEO pay, is given in the table below.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\"><thead><tr><th>Company<\/th><th class=\"has-text-align-center\" data-align=\"center\">Market cap <\/th><th class=\"has-text-align-left\" data-align=\"left\">CEO<\/th><th class=\"has-text-align-center\" data-align=\"center\">Annual salary <\/th><th class=\"has-text-align-center\" data-align=\"center\">Average Per day<\/th><\/tr><\/thead><tbody><tr><td>Vukile Property<\/td><td class=\"has-text-align-center\" data-align=\"center\">R18.7 billion<\/td><td class=\"has-text-align-left\" data-align=\"left\">Laurence Rapp<\/td><td class=\"has-text-align-center\" data-align=\"center\">R23.2 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">R63,562<\/td><\/tr><tr><td>Growthpoint Properties<\/td><td class=\"has-text-align-center\" data-align=\"center\">R42.9 billion<\/td><td class=\"has-text-align-left\" data-align=\"left\">Norbert Sasse<\/td><td class=\"has-text-align-center\" data-align=\"center\">R22.4 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">R61,370<\/td><\/tr><tr><td>Redefine Properties<\/td><td class=\"has-text-align-center\" data-align=\"center\">R29.1 billion<\/td><td class=\"has-text-align-left\" data-align=\"left\">Andrew K\u00f6nig<\/td><td class=\"has-text-align-center\" data-align=\"center\">R18.1 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">R49,589<\/td><\/tr><tr><td>Resilient Reit<\/td><td class=\"has-text-align-center\" data-align=\"center\">R16.6 billion<\/td><td class=\"has-text-align-left\" data-align=\"left\">Des de Beer*<\/td><td class=\"has-text-align-center\" data-align=\"center\">R17.6 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">R48,219<\/td><\/tr><tr><td>Hyprop<\/td><td class=\"has-text-align-center\" data-align=\"center\">R12.6 billion<\/td><td class=\"has-text-align-left\" data-align=\"left\">Morn\u00e9 Wilken<\/td><td class=\"has-text-align-center\" data-align=\"center\">R11.5 million<\/td><td class=\"has-text-align-center\" data-align=\"center\">R31,507<\/td><\/tr><tr><td><strong>Total<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>R119.9 billion<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>R92.8 million<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>R254,247<\/strong><\/td><\/tr><\/tbody><\/table><\/div><figcaption class=\"wp-element-caption\">*<em>Des de Beer is no longer the CEO of Resilient Reit for the 2024\/25 financial year. De Beer has been replaced by Jacobus Johann Kriek as of January 2024<\/em>.<\/figcaption><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read:&nbsp;<a href=\"https:\/\/businesstech.co.za\/news\/wealth\/702805\/how-much-you-need-to-earn-to-be-in-the-richest-1-in-south-africa\/\">How much you need to earn to be in the richest 1% in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>These are the CEOs of the top five JSE-listed property companies by market cap, and how much they earn. <\/p>\n","protected":false},"author":92,"featured_media":778370,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[853],"class_list":["post-777996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/777996","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\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=777996"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/777996\/revisions"}],"predecessor-version":[{"id":778510,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/777996\/revisions\/778510"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/778370"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=777996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=777996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=777996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}