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Thread: Non-executive directors underpaid in SA

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    Diamond Member Blurock's Avatar
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    Non-executive directors underpaid in SA

    PWC has released a study on executive remuneration in South Africa. According to them, South African excecutives are under paid compared to international trends. So what about the workers, how do they compare? What is your opinion?
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    Platinum Member desA's Avatar
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    With a de-industrialising economy in free-fall, being quickly overtaken by its neighbours - not sure the Directors have much to bargain with...
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    A very curved ball indeed.
    When comparing workers wages, home and abroad, you have to state what you are comparing too.

    A short list :-
    Education
    Work performance
    Detailed job description
    Responsibility level of production quality - in other words if you f..ck up who pays for the f...ck up?
    Production figures
    Production incentives
    House subsidy
    Medical aid
    Other benefits
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    Considering the pay gap and general poverty in this country, I think the executives are being paid far too much. That is why big corporate companies are overcharging their customers to pay for the overheads.

    If an entrepreneur earns a good return as reward for his initiative and the risk of his capital investment, I do not have a problem with it. I have a problem where listed companies employ executives who get paid in $ or Euro "to bring them on par with other countries". The reality is that are not Europe or the USA. We live in a developing country and the remuneration should fit the job. Those executives are only employees and have not risked anything. How do you justify a salary package of R50 million p.a. but you cannot afford to pay your workers a decent wage?
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    Diamond Member HR Solutions's Avatar
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    How do you justify a salary package of R50 million p.a. but you cannot afford to pay your workers a decent wage?
    Yes I do agree with you.

    But - If some people grow up - study hard - obtain a degree or two and are extremely qualified in what they do ..... add value to a company, help to grow the company and ensure that the company is making a lot of money ..... then they should be paid well.

    So as much as - yes there is a big gap between the very high earners and the poor - a company should and must pay the people that are contributing to their turnover. If you turn it around slightly - why should the company make the money and not pay the executive ?

    Its a tough one because yes some of the "workers" out there are not getting paid what they are worth, but in the same aspect, some companies work on the basis that if they don't like their wage, they can leave and the company will just hire someone else, because there are plenty of people running around out there that are unqualified and have no skills and are looking for a job.
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    Diamond Member Blurock's Avatar
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    Quote Originally Posted by HR Solutions View Post
    Yes I do agree with you.

    But - If some people grow up - study hard - obtain a degree or two and are extremely qualified in what they do ..... add value to a company, help to grow the company and ensure that the company is making a lot of money ..... then they should be paid well.

    So as much as - yes there is a big gap between the very high earners and the poor - a company should and must pay the people that are contributing to their turnover. If you turn it around slightly - why should the company make the money and not pay the executive ?

    Its a tough one because yes some of the "workers" out there are not getting paid what they are worth, but in the same aspect, some companies work on the basis that if they don't like their wage, they can leave and the company will just hire someone else, because there are plenty of people running around out there that are unqualified and have no skills and are looking for a job.
    I've been in the corporate world for a long time and I have seen senior executives come and go. Most of the time the organisation would have managed without them. They are nothing but glorified managers.

    There are very few leaders that can claim (or deserve) an executive package of more than R2mil p.a. If you don't like it, find yourself a job in the USA or Europe where you can earn $$ but don't have the tax breaks, job security, quality of life and general corporate benefits that you enjoy in South Africa. Nobody is worth R50 mil in South Africa!
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    Diamond Member Justloadit's Avatar
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    The problems start where most of the employees are unqualified. The kind of work they are doing, can be done by anyone, as you do not need to be qualified.
    Right now, most of the MPs in government and senior positions in municipalities and parastatals are not qualified to be in the position they are in, but are earning more money than most of the business owners on this site.

    There in lies the problem.
    Creating a minimum wage with job protection, simply takes the incentive out of any worker to better himself.
    This is the situation we are faced with currently.
    You will note that any worker who has qualifications, and is capable of doing the work, is probably paid fairly well for their position. If they are not being paid well, then the worker should find some one who does, and let me tell you there are many out there who will pay for skilled staff.
    Last edited by Justloadit; 17-Jul-14 at 04:09 PM. Reason: Spelling
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    Dave A (17-Jul-14)

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    Diamond Member HR Solutions's Avatar
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    Nobody is worth R50 mil in South Africa!
    Sure ........ that seems a tad high for a years salary
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    Quote Originally Posted by Justloadit View Post
    If they are not being paid well, then the worker should find some one who does, and let me tell you there are many out there who will pay for skilled staff.
    Very true!

    I also think the minimum wage of R900k per annum + perks for being a member of parliament is a bit steep. If you have a portfolio and some responsibility, I don't mind if the pull a bar though.
    Except there's no such thing as being held responsible and accountable for a government minister nowadays, it seems

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