The Executive Pay Barometer has reported a pay increase for CFOs despite tough economic environment.
The 14th edition of the 21st Century Executive Pay Barometer, which details the period from January 2019 to June 2019, uses publically available financial data to report on executive annual increases.
The barometer reported that the annual total guaranteed package increase for CFOs across all company sizes and industries was 6.1 percent, whereas CEOs and executive directors had a 6 percent increase.
This is despite the current local economic environment, which remains subdued.
The current economic growth of the year averaged at 0 percent growth per quarter. This is because, despite the economy growing by 3.1 percent in the second quarter of 2019, the economy retracted by 3.1 percent.
However, the report stated that consumer price inflation was well within the South African Reserve Bank’s inflation target (3 percent to 6 percent) at 4.3 percent.
According to the report, 2019 will be a year categorised by low economic growth and stable inflation rates. With a number of crucial state-owned enterprises remaining under severe financial pressure, all eyes will be on the credit risk rating agencies as South Africa seeks to improve its attractiveness as an investment opportunity.