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Business owners believe executives of large public enterprises earn too much money, a survey has found.

About 68% of South African business owners believed executives were too highly paid. Seventy-six percent of their international counterparts share this view, the researchers said.

The study, by Grant Thornton’s International Business Report, was released on Monday.

Head of corporate finance Jeanette Hern said in South Africa 90 percent of respondents believed the positions of chief executive and chairperson should not be held by the same person. In Brazil, Russia, India, and China, 88% of those surveyed felt these roles should be separated, compared to 80 percent globally.

About 85% of South Africans questioned believed shareholders should be consulted about remuneration policies for senior executives. This was well ahead of the global response of 67%.

The results indicated the tough global economic conditions of recent years had affected investors, Hern said.

“They want to know how their money is being spent and whether executives’ remuneration is in line with performance.” 

This hypothesis was supported by the fact that all Greek business owners surveyed since the country’s economic collapse, believed remuneration should be tied to performance.

Only 4% of South African business leaders differed from this opinion.

“These businesses need to ensure that their policies are known, understood, and transparent, and that reward can be justified by performance,” Hern said.

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Sat May 25 23:12:38 SAST 2013 ::

Aug 13, 2012

Truth1st

EXACTLY!EARN AS YOU WORK
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Aug 13, 2012

Beer

so what
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Aug 13, 2012

Mellow

remuneration should be lower - and in line with performance
..................................................................................................................
most of them cant even perform period so sad
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Aug 13, 2012

maneater

Could not agree more!! they if they are doing well then they must be paid accordingly but if not then why pay them? ( The same should apply to politians).
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Aug 13, 2012

CAKE1

True - i've assisted in my company's HR staff while we were short staff

CEO - R2m p/a
CFO - R1.5m p/a
Senior Mngrs - abt R600k to R1m p/a
Juniro Mngrs - abt R420k to R600k
Skilled labors - R300k to 420k

Then black people - regardless of wherether u r a manager or not:
R300k down.......
C@ke and the rest R54k a year....i'm not even a Tax payer with R4.5 a month CTC.
Deduct medical aid, tax, pension fun, uif, dissability, skills etc...I go home with R 2100 a month.

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Aug 13, 2012

Deepstick-C

This is a very interesting case especially in South Africa, there is lack of skills in the job market and most companies to be competitive (against their peers) find it as a solution to pay good perks for their innovative execs and directors. Individuals who are able to bring innovative ways of doing business, top notch leadership skills and able to take bold investment decision (e.g MTN) deserves share incentive schemes, bonuses and etc to keep them focused and not easily attracted to leaving the company, so as long as the business is profitable and realising good returns, shareholders must not interfere, but relax and enjoy their divies.
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