Practices and remuneration trends report
South Africa's top companies are starting to embrace the concept of fair and responsible remuneration - but more needs to be done.
Median increase in total guaranteed package for executive directors at all levels.
Total market capitalisation of JSE listed companies on the cut-off date.
Percentage of female CEOs across the JSE on the cut-off date.
Actively trading JSE listed companies on the cut-off date.
The central theme in our report this year is the role of the CEO, and we ask what factors companies should take into account when calibrating their philosophy towards CEO pay. We also explore the role of the CEO in setting the remuneration strategy of the organisation. Closely tied to the role of the CEO is the need for proper succession planning and whether CEOs are satisfied that they can build a future-fit workforce – according to PwC’s Talent trends 2019: Upskilling for a Digital World, 33% of South African CEOs are ‘extremely concerned’ about the availability of key skills. From our most recent discussions with institutional investors, it is clear that the depth of expertise required from remuneration committees to set and monitor performance conditions, and critically assess the suitability of variable pay structures, remains lacking. Furthermore, a CEO who claims to be worth a king’s ransom must be prepared to back up that claim by accepting a suitably challenging set of key performance indicators.
This publication focuses primarily on the Johannesburg Stock Exchang (JSE) and includes, as separate chapters, high-level analyses focused on the FTSE 100 and seven African stock exchanges. Data set out here is drawn from PwC’s internal resource base and information publicly available on 30 April 2019 (the cut-off date) and is valid for the period 1 May 2018 to 30 April 2019.
Average board tenure for executive directors on the JSE for reporting periods 1994 to 2018 is 4.5 years. The longest tenure is for EDs: 4.7 years, followed by CFOs: 4.5 years, and CEOs at 4.3 years. In all these positions, the director may have been incumbent for a longer period; the analysis is limited to the tenure in the positions quoted.
In this 10th edition: Practices and remuneration trends report, we are of the view that focusing on the financial wellness of junior workers, and aspiring to pay at least a living wage is a sound strategy for businesses in South Africa.
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