14th Edition

Detailing the period from January 2019 – June 2019

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
  • Sustainability


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.

  • All three kinds of executives had a similar median increase to the median general staff increase (6.1%, according to the 21st Century Increase Report – April 2019).

  • 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 overall trend remains the same as the previous report.

  • Size and the Wage Gap remain positively correlated.
  • 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 between company size and the wage gap.
  • The median Wage Gap within Medium Cap companies marginally declined since the previous report. Conversely the Wage Gap within Large Cap companies increased.

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).

  • In general, the Small and Medium Cap Executives earned significantly less as a percentage of TGP compared to their Large Cap peers.
  • CEOs in Large Cap companies earned the highest LTI percentage followed by Executive Directors and CFOs.
  • There has been no discernible trend across the company sizes and different kinds of directors as there have been both upward and downward movements in the data.
  • Medium Cap CEOs had a lower realisable LTI percentage than Small Cap CEOs. This has persisted from the previous report.


  • Appreciation Shares remain the dominant LTI vehicle across all kinds of executives.
  • Overall there has been a marginal increase in the prevalence of Full Share schemes and a marginal decline in the prevalence of Appreciation Share Schemes.
  • Executive Directors had the highest prevalence of Appreciation Shares.

  • Across all sizes and kinds of executive, Appreciation Share schemes remain the dominant form of share schemes issued.
  • The prevalence of Full Share schemes is positively correlated with company size.
  • Since the last report, there has been a marginal increase in the prevalence of Full Share schemes used.