This is the 14th 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 2019, South African elections have come and gone paving the way for “business as usual” to commence within the economy.
The current local economic environment remains subdued, however, the economy grew by more than expected in the second quarter of 2019 (3.1%). Ironically, this is the inverse of 2019’s first quarter performance which saw the economy retract by 3.1% – which leaves the current economic growth for the year averaging 0% growth per quarter.
Consumer price inflation has a more positive story to tell in 2019, with the existing year to date average for 2019 being 4.3%. This is well within the South African Reserve Bank’s inflation target (3% to 6%) and is positive for consumers.
2019 will be a year categorised by low economic growth and stable inflation rates. With a number of crucial state owned enterprises remaining under severe financial pressure, all eyes will be on the credit risk ratings agencies as South Africa seeks to improves its attractiveness as an investment opportunity.