IT CEOs lose out

Apart from companies listed on the JSE's Alternative Exchange (AltX), IT CEOs are the lowest paid, a survey of executive pay at listed companies has revealed.

The report, by Khokhela Consulting, shows the median salary package in 2012 was R5.3 million, which is a decline on the 2011 figure for total packages of R5.8 million. "This is to be expected under current market conditions," it says.

Khokhela explains that research shows that, over the past two years, some CEOs and executives have opted for no increases. In addition, new CEOs are starting at lower levels than their predecessor, which contributed to the negative move, it says.

Packages vary across industries and Khokhela's research found CEOs in consumer goods earn the most, with a median total package of R9 million, most of which is earned from short-term incentives.

Those who head up basic materials companies were the second-largest earners, with a median total package of R8.1 million, while financial services came in third, with a median of R7.2 million, the research found.

Khokhela notes that, apart from those listed on AltX, CEOs in the IT sector are the lowest earners, with a median total package of R3.5 million. This does not include communications companies, which Khokhela incorporates under consumer services.

A look at annual reports for the largest telecoms companies shows MTN CEO Sifiso Dabengwa earns the most, with a salary of R8.4 million, and bonuses of R12.5 million, for a total package of R23.5 million.

Vodacom CEO Shameel Joosub made a total of R9.3 million in its latest financial year, although he joined part of the way through the year. Brett and Mark Levy - co-CEOs of Blue Label - each earned a salary of almost R6 million, and bonuses of R7.3 million.

Nombulelo "Pinky" Moholi, Telkom's former CEO, made a total of R11.6 million in the 2013 financial year. She left the company, which has a March year-end, last November.

Her salary sparked outrage from trade union Solidarity, which said Telkom's management had taken "exorbitant" salary increases, yet only offered staff an average of 6%, which must be used to settle a historic wage gap. This will see some earning more than 6% and others less than that.

Median CEO salaries by sector