Buddy, can you spare a dime? PwC today put out a report on executive director pay, and hosted a panel discussion on this issue in Johannesburg. A central theme of the report is that there is some restraint – bosses just haven’t been receiving the scale of pay rises that might have been expected.
Increases in total guaranteed packages in the year to April for executive directors across the JSE were up 4% – down from an 8% increase in the previous year.
PwC’s Gerald Seegers says that “times have been tough, and incoming CEOs are accepting lower packages.”
Adcorp economist Loane Sharp said companies should not be restrained in how they pay their executives, but should able to remunerate on the basis of company performance.
And he suggested that workers should also accept the concept of productivity-linked pay.
He disagreed with Cosatu’s Patrick Craven that workers are perfectly justified in seeking high pay rises when they see high rises in executive pay.
There was an animated discussion, with some heated intervention from leading economist Mike Schussler, who to nobody’s surprise seemed to favour Loane Sharpe’s views over those of Patrick Craven.
Tweets of the Day:
EricWest™ (@EricJWest): COMMITTEE: A body that keeps minutes and wastes hours.
Chester Missing (@chestermissing): Well done qMr. President. You know you’re committed to service delivery when you fire Tokyo Sexwale but keep Angie Motshekga.
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