Median pay for CFOs of JSE-listed companies is R3.2 million – PwC

A PwC report into executive remunerations trends in South Africa says median pay for CEOs of JSE-listed companies was R5.2 million in 2020 and R3.2 million for CFOs.

The median pay for CEOs of large-cap companies was R13.3m. For CFOs of large-cap companies, the median pay was R7.6m and for executive directors R5.6m.

The median TGP for CEOs of medium-cap companies was R7.9m. The median TGP for CFOs of medium-cap companies was R4.8m and for executive directors R4.0m.

For the 2020 financial year, the TGP for executives across all industries is forecast to increase by 5.2%. The TGP for executives in the financial services sector is forecast to rise by 5.4%, basic materials are expected to rise by 5.1% and telecommunications executives can expect to see a marginal increase of 4%.

Following the COVID-19 pandemic, many short-term incentives have not been paid out (or will not pay out) due to the non-meeting of previously set targets.

The report includes 419 companies listed across seven sub-Saharan Africa (SSA) stock exchanges: Botswana, Ghana, Kenya, Namibia, Nigeria, Tanzania, and Uganda. The remuneration trends of a total of 1,156 executives were analysed, with remuneration translated from each country’s functional currency to the US Dollar. The median TGP paid to CEOs over the period April 2019 to September 2019 was $270, 000, for CFOs it was $178, 000, and for other executive directors $130, 000.

Proposed amendments to the Companies Act 2008 introduce the mandatory disclosure of the pay gap between the lowest-paid employee and the CEO, or highest-paid employee. Without an acceptable ratio, or range, even with mandatory disclosure it will be difficult to conclude on acceptability of the pay gap. Exacerbating this is the fact that numerous versions of the calculation methodologies exist which may result in the outcomes of the exercise not being comparable on a like-for-like basis. The report seeks to explore, as a starting point, what an acceptable range for the pay gap might look like for fixed-pay alone. This approach is followed on the understanding that variable pay opportunity for executives is most often calculated with reference to fixed pay, and is also highly variable and thus difficult to meaningfully compare.

In assessing income inequalities between CEOs and low-levels employees in South Africa PwC  performed an analysis using various income reference points. PwC’s analysis seeks to explore how far removed South African pay gaps are from the classic, and oft-cited “ideal CEO to average worker ratio” of Drucker, which is a ratio of 20:1 (or 25:1).

Here is a summary of the report.

Are you

Tell your story on our

Follow CFO Talks

CFO Talks

Quick links

The Workspace at The Club
Cnr Pinaster Avenue and 18th Street
The Club Shopping Centre, Second Floor
South Africa

The Workspace
Melrose Arch
44 Melrose Boulevard
South Africa

Tel. 012-643-1800 |

Scroll to Top