The executive placement industry adds as much as 15% to the country’s annual multibillion-rand executive remuneration bill, according to Deloitte’s just-released executive compensation report. For the 100 listed companies researched for the report, placements amount to a hefty R240m of the R1.6bn total annual cost of CEO compensation. The head-hunting industry has played a significant, albeit informal, role in setting guaranteed pay levels through its aggressive intervention in the market, the report reads. What the report does not state explicitly is head-hunters have been able to exert a strong influence in favour of executives because there has been little or no pushback from stakeholders, particularly shareholders. The report’s description of the role played by institutional shareholders implies their compliance. A finding that will come as less of a surprise and that flows from the lack of effective oversight, is that growth in annual pay for executives, in all sectors and for ...
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