• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Are SA's CEOs really so overpaid?

Feb 24 2013 12:00
*Peter Aling
Johannesburg - South Africa has some of the best-run companies in the world. The real return on capital of South African listed businesses is currently 10% – the highest in the world.

In some notable areas, such as corporate transparency, board effectiveness and financial sophistication, South Africa ranks first in the world. South African companies are clearly vibrant and competitive on the global stage, and many of the CEOs who run these companies deserve high praise.

But trade unions have begun to cite high levels of CEO pay in tactical negotiations to improve their members’ pay. Politicians have called for CEO remuneration to be capped.

To settle the dust in the debate, we analysed the profitability and executive remuneration of 230 JSE-listed companies. We used the excess return (over and above the market return) on shareholders’ funds as our measure of corporate profitability, and we used total remuneration as our measure of CEO pay to see who is being overpaid or underpaid according to shareholder returns.

*Aling is director of quantitative research at Prophet Analytics.

Highs and lows of CEO pay 

- City Press

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

executive pay


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote