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A third of CEOs at top JSE-listed companies didn't get a salary increase in 2020

14 October 2021 7:48 PM
Tags:
The Money Show
Bruce Whitfield
Deloitte
CEO salaries
Pay gap
ESG
executive remuneration
pay gap disclosure
Tyrone Jansen
Executive Remuneration Review 2021
ESG metrics

Bruce Whitfield discusses Deloitte's latest Executive Remuneration Review with Associate Director Tyrone Jansen.
© kirisa99/123rf.com

Many employed South Africans are feeling the pinch as costs keep going up while their pay doesn't.

Deliotte reports that a third of CEOs at top JSE-listed companies also got no salary increase in 2020.

However that's only part of the story notes Bruce Whitfield, as 80% of these firms did manage to pay out bonuses to executives.

(Read Deloitte's Executive Remuneration Review 2021 here)

Executives always seem to organise themselves in a way that they come out on top. Are South African executives still managing to convince remuneration committees that they're worth the big bucks?

Bruce Whitfield, The Money Show host

The response from Deloitte Associate Director Tyrone Jansen is that the answer is in fact 'no'.

The data will tell you that 34% of the JSE top CEOs did not receive an increase last year. In fact where executives did receive an increase, it was often at a much lower rate than those of the rest of the staff.

Tyrone Jansen, Associate Director in Human Capital - Deloitte

Yes, we have seen some headlines in the press, but I think that's more where some firms have got it wrong... in terms of looking at... the relationship between performance reward and the wider public stakeholder group.

Tyrone Jansen, Associate Director in Human Capital - Deloitte

There is also an ongoing shift in how the performance of CEO's is measured.

RELATED: New law to force companies to reveal wage gap between highest- and lowest-paid

Jansen expands on the growing importance of ESG (environmental, social and governance) metrics.

Yes, shareholders want to see returns on their investment but I think the wider public stakeholder group now demand a social contract...

Tyrone Jansen, Associate Director in Human Capital - Deloitte

What we're starting to see in terms of incentive schemes... is being held accountable to environmental, social and governance-type (ESG) metrics that then determine whether the CEO or executive has been successful in their mandate.

Tyrone Jansen, Associate Director in Human Capital - Deloitte

Is it important? Absolutely. Are firms getting it right? No! I think they are struggling with the notion of what are the right ESG metrics

Tyrone Jansen, Associate Director in Human Capital - Deloitte

Listen to Jansen discuss choosing the metrics relevant for the environment in South Africa:


This article first appeared on CapeTalk : A third of CEOs at top JSE-listed companies didn't get a salary increase in 2020




14 October 2021 7:48 PM
Tags:
The Money Show
Bruce Whitfield
Deloitte
CEO salaries
Pay gap
ESG
executive remuneration
pay gap disclosure
Tyrone Jansen
Executive Remuneration Review 2021
ESG metrics

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