Top execs in payday boom

REPORT: KEY DRIVERS ARE PERFORMANCE-BASED INCENTIVES AND GLOBAL BENCHMARKING

- Amanda Visser

The competition for global executive talent has resulted in a notable uptick in remuneration packages for top leadership roles in South Africa.

Executive directors saw significant increases in total remuneration with chief executives receiving an 8% boost and chief financial officers (CFOs) experiencing a 19% rise.

These increases were driven by higher guaranteed pay and improved incentives.

CFO pay was particularly influenced by stronger short-term and long-term incentives, suggesting a shift in the pay mix towards performance-based rewards.

The 18th PwC Directors Remuneration and Trends Report, based on data from the top JSE 200 companies, shows that hybrid incentive designs, blending performance share plans and restricted share plans are becoming more common as companies compete for global talent.

The PwC rewards team - Makhosazana Mabaso, Leila Ebrahimi and Izelle Groenewald - looked at recent trends in the UK and US where boards increased the overall level of pay to align with international peer groups and restructured incentives.

"This shift caps a 15-year evolution from a regulatory emphasis on transparency and fairness to a clear focus on competitiveness," the report notes.

Over the past two years, a rising number of FTSE 100 companies have lifted total incentive opportunities materially, with six doing so by 100% of salary or more last year and a further 16 doing so this year.