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