Is CEO compensation in South Africa out of control?

ADSL South Africa (Broadband South Africa), 5 May 2010 

It has been revealed in an investigation done by accountants firm COMPUTUS, not only that CEO compensation in South Africa is out of control, but that CEOs operating in the telecoms industry in South Africa are on average earning R11.5 million each in remuneration per annum. 

The worker is worthy of his pay… 

Yes, the worker is worthy of his pay, but it’s clear that CEO compensation in South Africa, especially the compensation of CEOs in the telecoms industry, is way out of control when compared to the ‘peanuts’ the Average Joes have to be satisfied with.  

If one considers the above-mentioned figure of R11.5 million then one can understand why many Average Joes get hot under the collar when they learn of this. To give our fellow Average Joes some perspective, while we at ADSL South Africa (Broadband South Africa) are not up to date with the salaries average workers are getting paid in the telecoms sector, we can tell you with confidence that it’s possible to employ at least 115 people as Bank Tellers at one of our local banks for R11.5 million per annum! We’re sure that many will agree with us when we say that CEO compensation of a million or even R2 million per annum is acceptable from a South African point of view, but AVERAGE compensation in the vicinity of R11.5 million per annum per CEO is a bit steep. 

In other words, not only is CEO compensation in South Africa out of control, but CEOs operating in the telecoms industry earn far more than their peers in other industries. In fact, CEOs operating in the telecoms industry earn on average 2 times more than CEOs in any other industry of the South African economy! 

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