The average CEO in SA received a pay hike of R200,000 over the past year - here's how much they now earn
- A new PricewaterhouseCoopers report found that the average South African CEO of a listed company can expect to earn R5.4 million a year.
- Mining sector CEOs earn the most, followed by financial services.
- For more stories, go to www.businessinsider.co.za.
South African CEOs of listed companies receive an average salary of R5.4 million a year this year, an increase of R200,000 (around 4%) the past year, a new report by PwC found.
The PwC executive directors practices and remuneration trends report, released on Tuesday, showed that there are 335 CEOs of South African listed companies, 310 chief financial officers (CFOs), and 435 executive directors.
The report found that CFOs receive an average annual salary of R3.8 million, and executive directors an average salary of R3.3 million.
The salaries of both CFOs and executive directors also increased by on average R200,000 the past year.
Compared to seven other sub-Saharan African countries, South African executive directors were paid roughly R1 million more.
PwC found that the total guaranteed package (TGP) for CEOs, which includes bonuses, short term incentives and long-term incentives, were highest at the large mining houses where CEOs receive R16.8 million a year, and CFOs R6.9 million.
Short-term and long-term incentives can include achieving set business goals and benchmarks, and share schemes.
Mining companies were followed by the industrial sector where the average South African CEO can expect to receive a TGP of R12.7 million, and CFOs R5.9 million.
In the financial sector, accounting for 15.71% of the total Johannesburg Stock Exchange (JSE)'s market capitalisation, CEOs received a TGP of R9.6 million, and CFOs R5,15 million.
CEOs in small market capitalisation technology companies can expect a TGP of R3.4 million, and CFOs R2.5 million.
PwC said the Gini coefficient gap between CEOs and entry-level employees in South Africa increased by 0.011 to 0.436 the past year.
Meanwhile, South Africa’s total Gini coefficient, which measures the level of inequality in a country, is 0.63.
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