While CEOs on average earn between 35 and 53 times more than the total remuneration of the average worker, leaders in the telecommunication industry earn an average of 59 times more than an average worker, a new report has found.
The report, "Remuneration of Chief Executive Officers: An Overview of JSE-Listed Companies", released this month by trade union Solidarity, also claims the average annual salary of a CEO is between R3.4 million and R4.6 million.
The union claims the average change in the total pay of CEOs was 44.19%, compared to the 5.24% received by workers. In addition, it stated: "No direct relationship could be established between the company profits... and the salaries, bonuses and total emoluments of CEOs. Twenty-one percent of CEOs received an increase in their basic salary in spite of a decrease in company profits."
In the electrical and electronic equipment sector, CEOs on average earn 42 times the average salary of a worker. Including options exercised, this figure moves to 54 times.
The average change in total emoluments of CEOs is 28%, compared to 3.43% for workers, said the report.
In the IT, software and computer services sector, CEOs on average earn 21 times more than the average worker. Factoring in the value of options exercised, this moves to 22 times.
Solidarity also said the total compensation of CEOs increased on average by 12.56%, compared to 5.47% for workers in this sector.
Top 10
The union singled out the top 10 earners among CEOs. MTN CEO Phuthuma Nhleko ranked sixth, with a total package of R23 million. The first placed CEO, Stephen Ross of Edgars, earned R111.7 million.
The union also reported the highest values paid to a CEO for the companies that reported a net loss. GijimaAst CEO John Miller was paid a total of R4.7 million, but the company reported a loss of R49.3 million. At the top of the table is AngloGold Ashanti CEO Bobby Godsell, with a salary of R13 million and a company loss of R897 million, according to the union.
Miller says he does not determine his remuneration, as it is determined by a committee which felt that it was deserved for saving 3 200 jobs and rescuing the company. He points out that half of his salary was a bonus. Nhleko did not comment at the time of publication.
Annual reports informative
The union surveyed all companies on the JSE except those with foreign CEOs, or foreign companies listed on the bourse. It also excluded delisted companies and those on the Alternative Exchange, as well as the Capital boards.
For information on workers' salaries, it made use of the Quarterly Employment Survey, published by Statistics SA. Solidarity made use of the annual reports that were available at the end of March for the survey, which was published this month.
Related stories:
ITWeb's salary survey
Why develop when you can poach?
Share