A report by Deloitte has found that some senior executives of JSE listed companies are earning R 69 000 a day and that while top executives used to earn around fifty times the salary of the average worker, they now earn five hundred times the salary.
Stephen Grootes spoke to Dr Mark Busain, chairperson of the 21st Century Pay Solutions Group.
Busain says the gap is because of increased governance, increased regulatory responsibility and the increasing complexities of work in businesses.
The bigger consideration is the complexity and the responsibilities...The other thing to contextualise is the huge growth of the variable pay - the short term and long term incentive so that figure that Deloitte quoted, nearly two-thirds of it is paid risk where the person could get zero.— Dr Mark Busain, chairperson of the 21st Century Pay Solutions Group
To lift the salaries at the bottom is our number one priority and I think the best way of doing it is education and more education where we can get more qualified, skilled and productive folk.— Dr Mark Busain, chairperson of the 21st Century Pay Solutions Group
Halving CEO pay won't necessarily solve the problem because if you took all 10 000 CEOs in South Africa and you halved their pay, every worker would probably get R29 a month. I think the bigger solution is making sure the executive variable pay is tied to organisation performance, that is where the tire hits the tar.— Dr Mark Busain, chairperson of the 21st Century Pay Solutions Group
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This article first appeared on 702 : Executive salaries are now 500 times greater than the average worker