Welcome to PwC’s fourth edition of the Executive directors – Practices and remuneration trends report: South Africa 2012.
As the global economy has shown signs of market recovery but not at the pace anticipated, we are finding companies are once again investing in recruiting and retaining talent in an effort to align people strategy with business strategy. However, this is all in a market that is facing regulatory, shareholder and media scrutiny over executive remuneration, while at the same time, trying to preserve shareholder returns in the face of what appears to be an ever increasing payroll cost. Consequently, it is not surprising that the key challenge facing companies is to budget for low base pay increases, whilst remaining competitive in the market to retain and motivate key employees. With regard to variable pay, companies are starting to question the effectiveness of deferral and are looking more towards incorporating non-financial performance criteria in long-term incentive plans.
In this issue