HOURS

CityPress - - Business -

South Africa’s rich­est CEOs top an in­come gap study that shows how quickly they will earn the an­nual salary of their av­er­age coun­try­men.

Quartz this week linked Bri­tish think-tank High Pay Cen­tre’s Fat Cat Wed­nes­day re­port with Bloomberg’s Global CEO Pay In­dex to cal­cu­late the com­par­a­tive in­dex.

“While CEOs in South Africa make far less on av­er­age than their US coun­ter­parts, their salaries were 541 times more than the av­er­age in­come in their own coun­try,” Quartz re­ported on Thurs­day.

“It took CEOs in South Africa just over seven hours to make $13 194 (R180 251), which is the coun­try’s av­er­age yearly wage.

“As­sum­ing Mon­day, Jan­uary 2, was a pub­lic hol­i­day and they started work at 7.30am on Tues­day, Jan­uary 3, CEOs in South Africa clocked in the an­nual av­er­age wage by 3pm that day.”

In Novem­ber, Bloomberg re­ported that “if your life’s goal is to be a highly paid CEO, the US is the place to be. But if your dream is just to be richer than so­ci­ety, South Africa and In­dia are great bets too”.

It was com­ment­ing on its Bloomberg Global CEO Pay In­dex, which ranked South African CEOs num­ber one on an in­dex of a pay-to-av­er­age in­come ra­tio, re­veal­ing how wide the gap was.

Its re­sults showed that CEOs in South Africa earn around R97.5 mil­lion per year, com­pared with the R180 243 the av­er­age South African earns in the same pe­riod.

The Fat Cat Wed­nes­day re­port – which fo­cused on UK CEOs – re­vealed that top bosses around the world “will al­ready have made more money by the first Wed­nes­day of 2017 than the typ­i­cal UK worker will earn all year”.

“Af­ter a year in which elites were crit­i­cised for be­ing out of touch and ig­no­rant about the con­cerns of or­di­nary peo­ple, these pay-gap fig­ures con­firm that there are dra­mat­i­cally dif­fer­ent rates of pay at the top com­pared with what every­one else re­ceives,” the High Pay Cen­tre said.

“Our cal­cu­la­tion is not de­signed to make the re­turn to work harder than it al­ready is,” said High Pay Cen­tre di­rec­tor Ste­fan Stern.

“But Fat Cat Wed­nes­day is an im­por­tant re­minder of the con­tin­u­ing prob­lem of the un­fair pay gap in the UK.

“We hope the gov­ern­ment will recog­nise that fur­ther re­form to pay prac­tices is needed if this gap is to be closed. That will be the main point in our sub­mis­sion to the busi­ness depart­ment in its cur­rent con­sul­ta­tion over cor­po­rate gov­er­nance re­form.”

– Fin24 / Bloomberg

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