Average CEO earns R5.3 million a year
October 8, 2009
New research has found that the median CEO package increased 11.6 percent to R5.3 million in 2009, from R4.7 million in 2008.
Executive search and reward solutions firm, Mabili consultancy's report on directors' remuneration for 2009 pointed to the "difficult market conditions" which resulted in reasonably low executive pay increases in comparison to previous years.
But nevertheless the research reveals that FirstRand chief executive Paul Harris pocket R27.8 million, and Sanlam chief executive Johan van Zyl take home R27 million.
According to Mabili, the average executive chairpersons enjoyed a rise of 11.6 percent to R4.3 million, while total packages for chief financial officers and other senior executives saw only a marginal increase to R2.9 million and R2.6 million respectively.
Analysis of pay levels across vertical markets indicated that CEOs in the Financials industry took home the highest total packages at R6.7 million, while CEOs in the Basic Materials received the highest guaranteed packages, at R3.8 million.
The total packages for CEOs in the Basic Materials and Industrials markets amounted to R5.4 million, while the total package for CEOs in the Consumer Goods market was marginally lower at R5.3 million.
Mabili said: "The severe economic downturn is not the only factor that is keeping remuneration practitioners busy; South Africa has had a considerable amount of industrial action over the past couple of months. There appears to be a sentiment in the market that it is politically driven, following the promises made leading up to this year's election.
"Yet, irrespective of the motive, many blue collar workers have received increases in excess of 10 percent during 2009," it said.
"There is far more transparency around executive pay with a greater link between performance and pay," Mabili concluded.
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