Remumeration rises for CEOs and CFOs across JSE Top 200 - PwC

Total remuneration for executive directors increased over the past year, with chief exectives (CEOs) and chief financial officers (CFOs) seeing median increases of 8% and 19%, respectively, according to PwC’s 2025 Directors Remuneration and Trends report that looked at the executive pay across JSE Top 200.

Despite macroeconomic pressure and heightened scrutiny of executive pay, shareholders continue to back remuneration practices. PwC’s 2025 Directors Remuneration and Trends report reveals that executive director pay has rebounded over the past year, with increases outpacing inflation and drawing renewed attention to fairness, transparency, and alignment with performance.

Makhosazana Mabaso, PwC’s reward partner, said, “These results contrast sharply with trends observed in 2024, where variable pay outcomes had decreased. The return to stronger performance-linked remuneration suggests a shift in market conditions, as well as a growing international influence on local executive pay practices.” 

The report found that non-executive directors also saw increases in remuneration, with board member fees rising 12% on a median basis—well above inflation. However, board chair fees rose more modestly at 6%. Despite these increases, shareholder support remained high, with 98.11% of votes in favour of board fee resolutions. This indicates a general alignment between remuneration practices and shareholder expectations.

Support for remuneration policies (91.6%) and implementation reports (83.8%) remained stable year-on-year. However, the number of companies receiving less than 50% shareholder approval for their implementation reports more than doubled—from 2.6% in the prior year to 5.4%—highlighting pockets of dissatisfaction.

The report said concerns included the introduction of “super-stretch” long-term incentives (LTIs) awarded in addition to standard allocations, often without clear rationale. These developments suggest that while overall support is strong, shareholders are increasingly focused on fairness, transparency, and the intent behind executive pay decisions.

Leila Ebrahimi, PwC’s reward partner, said: “Looking ahead, we expect pay transparency to be a focal area—particularly with the introduction of the Fair Pay Bill alongside the wage gap disclosure requirements of the Companies Act. This emphasises the need for solid pay architecture to be in place, and we expect that companies will put more effort into ensuring that organisational design is optimised, and robust job grades and pay scales are in place for the foundation of fair pay.” 

The report said in addition, executive variable pay—particularly LTI design—is under growing pressure to evolve. Early signs point to increased upside potential and ad hoc awards, aligning with global practices but raising questions about rationale and consistency. At the same time, companies are rethinking their broader employee value propositions amid rising employee financial stress and talent retention challenges. Emerging trends include tax-optimised benefits, innovative incentive schemes, and renewed focus on recognition and well-being.

As South African companies diversify revenue streams and expand offshore, they are recalibrating remuneration strategies to align with changing business models and performance outcomes, the report said.

“Boards must strike a balance between competitive pay, performance alignment, and fairness,” said Ebrahimi. “It’s clear that stakeholder expectations—both from shareholders and employees—are rising.”

BUSINESS REPORT