The Companies Amendment Act states that companies must disclose how much its top employees earn.
While the majority of South Africa’s working-class struggle to make ends meet every month, the executives of prominent companies walk away with millions in remuneration.
The country’s Companies Amendment Act, which was signed into law in July 2024, includes that public and state-owned companies must disclose how much the top and lowest employees earn.
The Act also adds that private companies with more than 10 shareholders must make their financial statements public.
In line with the Act, companies such as Woolworths, Shoprite, Pick n Pay, Spar and Discovery have revealed their executives has been walking away with more than R10 million each in remuneration per year.
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CEO remuneration cut by R57 million
Woolworths’ annual results for year ended June 2024 show that the total remuneration for its CEO Roy Bagattini in 2024 was R65.29 million.
The breakdown of his remuneration package includes the base salary of R19.39 million and benefits worth R2.5 million. In addition, he received short- and long-term incentives.
However, Bagattini’s remuneration for 2024 is R57 million less than what he got the previous year. In 2023, his remuneration was R122.46 million. Then, his base salary was R18.18 million and the benefits were worth R2.29 million. His package in 2023 was boosted by incentives.
Woolworths’ food business has reportedly done better than the other sections, but its fashion, beauty, home, Woolworths Australia and Woolworths New Zealand divisions have been under pressure.
Remuneration increases by race
While Woolworths’ annual report does not show the exact amount the lowest paid employee gets, it shows that its ‘Just Wage Initiative’ included in the 2019 financial year has increased its store employees’ hourly wage from R33.40 to R42.50 per hour.
The report also shows that annual salary increases for Woolworths South Africa in 2024 differ by race, gender, and position in the company. When it comes to management, the highest increased was received by coloureds (6.23%); Africans (6.20%); Indians (5.90%); and whites (5.82%).
The race that received the highest annual increase when it comes to store staff were still coloureds (6.48%); Africans (6.38%); Indians (6.32%); and whites (6.19%).
“Salaries for store employees are 18% above the retail sector and 54% above the national minimum wage. Annual salary increases for supply chain employees are determined in the context of the union wage negotiations.”
Shoprite’s CEO gets R20m increase
When it comes to Shoprite, its CEO Pieter Engelbrecht received an almost R20 million salary bump. For 2024, Engelbrecht’s remuneration was R83.27 million, however there is a twist to this.
According to the group’s annual results released on Monday, the R83.27 million includes a two-year deferred incentive based on Shoprite’s achievement of performance targets. The incentive amounts to R14.74 million, which he will get in 2026.
For 2023, he did not have any deferred incentive, and the total remuneration was R64.66 million. For this year, excluding the incentive, his package is R68.52 million, including a base salary of R18.86 million.
The group’s report does not detail how much its lowest employees earn. It has also recently sold its furniture business, which includes House & Home, and OK Furniture to Pepkor.
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‘Executive remuneration is considered fair’
Pick n Pay Group in its annual report for year ended February 2024, described its executive and senior management remuneration to be “fair and competitive” against market benchmarks.
There were changes made in the leadership of the group on 30 September 2023, when Sean Summers replaced Pieter Boone as CEO. The report includes the total remuneration of both individuals.
Boone’s remuneration for 2023 was R14.87 million, with a base salary of R10.70 million. When it comes to 2024, his remuneration was R25.31 million due to his termination settlement of R15.77 million.
The report details that Summers’ remuneration for 2024 was R10 million, which was just his base salary.
R55m for the executive
Pick n Pay Group’s total remuneration for executives, which is the CEO, CFO, and executive director amounted to R55.11 million, which is an increase from the R38.55 million in 2023.
The report does not state how much the lowest employee earns, but it gives assurance that the retailer complies with the minimum wage across all employee categories.
“The Group follows an equal pay for equal work policy and does not discriminate based on race, ethnicity or gender.”
ALSO READ: Top management remains white and male-dominated – Report
Spar CEO’ got’s R2m base salary
The available annual report for Spar Group is based on the period 1 October 2022 to 30 September 2023. It does not include the remuneration for the current CEO, Angelo Swartz, who was appointed on 1 October 2023.
The remuneration in 2023 for Swartz predecessor, Brett Botten, was R25.04 million, with a base salary of R2.83 million and a lump sum payment of R12.72 million because he was retiring on 31 January 2023.
In 2022, when he served as Group CEO, he had a remuneration package of R9.78 million, and a base salary of R7.95 million. After he retired, the chairman Mike Bosman was chosen as interim CEO.
Bosman’s remuneration for being executive chairman and interim CEO was R14.86 million.
How a CEO salary is set
There are different factors that determine how a CEO’s remuneration is set. These include company performance, industry standards, market conditions, the CEO’s experience, and company size.
The board of directors is part of the stakeholders involved in setting the CEO’s remuneration. The remuneration often includes base salary, annual bonus, short- and long-term incentives, and benefits.
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