13th Edition

Detailing the period from July 2018 – December 2018

This is the 13th 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
  • Sustainability


The South African economy has entered 2019, an election year. Traditionally, an election year is characterised by very few controversial decisions as the election campaign takes on greater importance.


The current economic environment remains persistently subdued as low economic growth, a high unemployment rate and rising consumer costs remain hot topics. The South African Reserve Bank forecasts the inflation rate to be 4.8% in 2019. Gross Domestic Product is expected to grow at 1.3%, however, there has been a lot of speculation regarding a possible downward revision of that figure at the next Monetary Policy Committee meeting .


The South African economy is currently in a “stationary” state as the election approaches. Once the election has past, we will receive a more accurate understanding of the true state of the economy and its impact on Executive salaries.

  • CFOs had the largest annual increase compared to March 2018.

  • CEOs and Executive Directors received a median increase of 6.3% and 6.6% respectively.
  • CEOs received a median increase below that of general staff (according to the 21st Century Increase Report, September 2018)

  • Company size remains positively correlated with median total guaranteed pay across all kinds of executives.
  • CEOs remain the highest paid in terms of TGP, followed by Executive Directors and CFOs.
  • CFOs earned a higher median TGP than Executive Directors within large companies.

  • The positive correlation between the Wage Gap and company size persists. A large contributor to this is that larger organisations will have a CEO with a higher job grade than that of smaller organisations. The larger salary attached to the higher job grade contributes to this positive correlation.
  • There was a marginal reduction in the median wage gap across all company sizes.

The Wage gap has been calculated by dividing the CEO Total Guaranteed Package (TGP) by the median of the A, B and C-band workers (general staff) Total Guaranteed Package (TGP)

Short Term Incentives:

  • Large Cap Executives received the largest STI as a percentage of TGP across all kinds of Executives.
  • Medium Cap companies saw their median STI percentage increase across all three kinds of Executive.
  • In general the Small and Median Cap Executives earned significantly less as a percentage of TGP compared to their Large Cap peers.

Long Term Incentives:

  • As with the other elements of pay, LTIs as a percentage of TGP are also positively correlated with company size across all kinds of Executives.
  • One exception does exist – where currently Medium Cap CEOs received smaller median LTIs as a percentage of TGP than Small Cap CEOs received.
  • CEOs in large cap companies earned the highest LTIs as a percentage of TGP, followed by CFOs and Executive Directors.


  • There have only been marginal changes in the mix of shares offered to Executives.
  • Executive Directors had the highest prevalence of appreciation shares.
  • The current methodology allows for both types of share schemes to be administered to a single incumbent and therefore the sum of the two percentages can exceed 100%.

  • Compared to the previous report, the prevalence of share schemes used has remained relatively unchanged.
  • Appreciation shares remain the dominant form of shares issued across all sizes and kinds of Executives.