earningsMoneyweb reports that the 4th edition of the 21st Century Executive Pay Barometer, which analyses executive pay within JSE-listed companies, has found that although there have been marginal changes in executive pay trends, the overall picture remained a familiar one.  

The executive increases received by CEOs, CFOs and executive directors were comparable and in line with the median increase received by general staff (which was approximately 6%) so they would not have had a significant effect on the wage gap.  The wage gap remained positively correlated with the size of the company as a result of larger companies having their CEO at a higher grade (which attracted a larger salary) than smaller companies.  A notable observation when looking at the trends within long-term incentives was eligibility.  Short-term incentives were often offered to general staff, whereas long-term incentives were usually reserved for executives and critical-skilled employees.  The King IV governance guidelines of two non-binding votes to shareholders on the topic of executive pay, one based on the remuneration policy and the other on the implementation of the policy, saw an increase in the number of ‘no’ votes received by companies in both instances.  This increased activism has apparently caused a number of organisations to review their remuneration policies and make decisions on whether it should be adjusted or not after stakeholder engagement.


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