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Directors coin it in SA

Jan 20 2010 07:56

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Johannesburg - The remuneration of the chairpersons of South African boards rose 15% in the past year and that of non-executive directors 13%.

This is in contrast to Britain, where 65% of its companies failed to approve increases for their chairpersons.

PricewaterhouseCoopers director Gerald Seegers says remuneration committees will need to justify their salary structures more than ever before.

This year these structures will be subjected to careful scrutiny, by shareholders in particular, who will want to see how much value has been added for the money earned.

One issue that Seegers believes will elicit vigorous debate is the possible compensating of non-executive directors and chairpersons in shares instead of cash.

Seegers announced PwC's third report on the remuneration of non-executive directors and chairpersons in Johannesburg on Tuesday.

He said emphasis needed to be placed on compensating directors for their contribution, rather than on the numbers of meetings attended.

According to the report the number of non-executive directors on the boards of JSE-listed companies has risen by 6% to 2 159.

In the same period the average age of non-executive chairpersons was still 59, but the average age of non-executives came down from 52 in 2008 to 48 last year.

In Britain the average age of chairpersons is 63 and that of non-executive directors 59.

- Fin24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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