Executive remuneration is a multifaceted issue which has perennially caused significant debate among shareholders, business groups and the wider public.
Median increase in total guaranteed package for executive directors at all levels.
Total market capitalisation of JSE listed companies on the cut-off date.
Number of years it will take to close the global economic gender gap.
Actively trading JSE listed companies during the 2017 reporting period.
Executive directors face a number of challenges, and their companies are increasingly being held to account for their contribution to social upliftment in the face of pervasive inequality. Fair and responsible remuneration is a concept that must be implemented in relation to employees across an organisation, and remuneration committees must place special focus on pay conditions for junior employees.
Remuneration paid to executive directors must be justifiable to all stakeholders, not just the shareholders, and recent corporate failures have called into question, inter alia, whether companies have adequate risk adjustment mechanisms in place for executive remuneration.
Traditionally, remuneration benchmarking has been one of the primary tools used to attract and retain employees who are critical to the performance of an organisation. We critically assess the future of benchmarking, and suggest a new approach that would be more relevant in today’s environment.
While gender parity has been under the spotlight for a number of years, progress on adequately addressing the issue has been slow. Companies need to take gender equality more seriously in all areas, including by eliminating unjustified pay differentials between men and women.
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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