EXECUTIVE PAY BAROMETER
Detailing the period from January 2018 – July 2018
This is the 12th edition of the Executive Pay Barometer
The barometer uses publically available financial data (from listed companies’ financial and remuneration reports for the most recent 6 month period) to report on:
- Executive annual increases
- Executive variable pay ratios to total guaranteed pay:
- Short-term incentives
- Long-term incentives
- Prevalence of types of share schemes
- Executive remuneration components by company size
- Executive remuneration components by industry
- Wage gap by company size and industry
The wave of optimism which surrounded the South African economy at the beginning of 2018 has slowly dissipated as the harsh reality of poor economic data has affected the economy. The economy has entered a recession after reporting two consecutive quarters of negative economic growth (Q1 -2.6% and -0.7% in Q2). This contributed in part to the Rand’s recent depreciation and has placed increasing pressure on consumer spending.
Since the previous Barometer (March 2018), the unemployment rate has deteriorated further to 27.2%. Compared to Q3 2017, the number of discouraged workers has increased approximately 17% which indicates that citizens of working age are viewing the labour economy in a more negative light than they did previously.
- JSE Listed Company’s Executive TGP Increases were in line with General Staff Increases (21st Century Increase Report).
- There have been no discernible variations across the elements of remuneration since the last report was released.
- The 2018 edition of the Sustainable Remuneration Model indicates that the slope of South Africa’s trend line is 0.7368.
Better alignment of pay and performance will improve this and move the slope of the line closer to one (perfection).
- The current state of the economy is somewhat weak as we have entered a technical recession, facing rising unemployment and rising inflation as a result of the Rand’s depreciation, among other issues.
Thank you for your interest in the
21st Century Executive Pay Barometer
B.Com (Hons) Economics
B.Sc Chem. Eng., MBA – Leadership & Sustainability