The CEOs of some of the JSE’s top 20 companies continue to rake in millions in annual remuneration, widening the gap between them and other employees.
In recent years, there has been an outcry from shareholders about directors’ remuneration. On a number of occasions, some shareholders voted against directors’ remuneration policies.
In its “Directors Remuneration and Trends Report” released this year, PwC said the scrutiny and activism around executive remuneration is unlikely to subside any time soon. It said issues that were raised by shareholders and proxy advisers over the past year remain fairly consistent and wider negative stakeholder perceptions of excessive executive pay persist.
Below are some of the top-paid former and current CEOs of JSE-listed companies for financial 2024:
- Former CEO of Prosus and Naspers Bob van Dijk: he left the company in September 2023 and earned $18.27m (about R335m) for the year to March. His remuneration includes base salary, performance shares, share options, share appreciation rights and severance pay.
- Mike Henry, CEO of BHP Billiton: he raked in R159.5m in total remuneration in financial 2023, which includes base salary, short-term incentives, cash bonuses, benefits and long-term incentive plans.
- Michel Doukeris, CEO of AB InBev: his total compensation was R155.5m. It includes bonuses, benefits and pensions.
- Former Richemont CEO Jérôme Lambert, who is now COO: he received SFr9m (R184m) in the year to March.
- British American Tobacco (BAT) CEO Tadeu Marroco, who took over in May last year: he was awarded $5.8m in financial 2023.
Big banks
Financial sector CEOs laughed their way to the bank in 2024. Investec CEO Fani Titi ruled the roost among South Africa’s banking tsars, earning R121m; Standard Bank CEO Sim Tshabalala received R83m in the year to April; Capitec CEO Gerrie Fourie pocketed R65.7m, up from R62m last year; and outgoing Absa CEO Arrie Rautenbach was paid R40m. He has taken early retirement and is serving a garden leave period until April next year.
Sanlam CEO Paul Hanratty is set to secure a salary of R6.13m this year and each of the next four years. In June, Sanlam and Hanratty agreed to extend his term until the end of December 2027.
Well-connected networks
The CEOs of South Africa’s telecoms giants had a tough year but still earned handsomely. For the year to April, MTN CEO Ralph Mupita’s remuneration consisted of a basic salary of R17.63m, R13.97m in short-term incentives and R36.92m in long-term incentives.
Vodacom CEO Shameel Joosub’s salary surged from R63m in 2023 to R73.5m this year.
Shelling out to SOE bosses
Eskom’s annual report and financial statements said former group CEO André de Ruyter, who resigned in December 2022, was paid R6.3m for financial 2023, compared with R7m in 2022.
According to the Eskom results for the year ending March 31, total remuneration for executive directors rose dropped to R9.1m from R12.5m in financial 2023. Non-executive directors’ remuneration went from R7.9m in 2023 to R12.1m in 2024.
According to Transnet’s annual financial statements for the year ended March, group CEO Michelle Phillips earned R4.8m. She was named acting CEO in November last year after Portia Derby resigned, and her appointment became permanent in February.
The Transnet statements showed Derby received base pay of R4.5m for financial 2024, but received a total for the year of R16.9m, including “termination agreement” payments.
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