Joe Public is proudly new SA
NO WINDOW-DRESSING: 60% OWNERSHIP WITH CLEAR VOTING RIGHTS
The dictionary defines “Joe Public” as “an ordinary member of the general public”. But this should not lead you to think Joe Public United – one of South Africa’s largest advertising companies – lacks sophistry and reputation.
Against the background of the multibillion-rand advertising industry taking flak for lack of transformation – race and gender parity in management and ownership – Saturday Citizen went over Joe Public with a fine-toothed comb.
This is because there are numerous instances of window-dressing by some large corporates in post-apartheid South Africa: black executives and board members who wield no real power compared with their white counterparts. Such misrepresentations have surfaced despite the Broad-Based Black Economic Empowerment Act 53 of 2003 being enacted to redress past economic imbalances.
Bogosi Motshegwa, a strategic planner at a brand strategy consulting firm and advisory council member at Vega School of Design, pulled no punches in exposing lack of transformation in a recent Facebook post, describing being black in the advertising industry as “exhausting”.
“White people in advertising experience the industry differently from black people,” said Motshegwa. There’s a systemic perception that white people deserve everything and black people are lucky to have everything, and should be grateful.
“This is precisely why black creatives get taken advantage of, because it is this mindset that is oppressive and keeps one in check. Two creatives, white and black, who start off together in the same position in an agency will never be in the same position two years down the line.
“This has nothing to do with talent, intelligence or performance. Black professionals get less opportunities and white creatives get better opportunities, better briefs, better money, better experiences. They are empowered, while black creatives have to find their own way.”
White creatives, said Motshegwa, got promoted quicker and their salaries grew faster.
“Getting promoted or a salary increase as a black professional is a trap, because you will pay for having asked for and receiving an increase. You will work for that money,” said Motshegwa.
“That’s why there needs to be remuneration transparency in ad agencies. A black creative can stay on the same salary for three years, while most white creatives get mid-year and end-of-year salary increases. The argument is that they work harder.
“Black creatives usually get crumbs of briefs. They get the jobs nobody else wants. Fighting makes things worse – you get worked out of the system really quick. If you are black in advertising and don’t speak for yourself, your career is dead before it even began.
“This is exacerbated by BEE. When you are black, it matters not how well you perform, you are always seen and perceived as a BEE. The only reason you are in the boardroom is to improve the agency’s BEE rating.”
Saturday Citizen put issues of transformation to Joe Public chief creative officer and partner Xolisa Dyeshana. Conceding that transformation is “a complex issue and important”, he pointed to “a lacklustre attitude from many agencies”. But he said that over the past few years, “this has begun to change, but not nearly at a quick enough pace”. “There have been some significant strides, many of which were forced by government. These strides have begun to address some of the structural changes we need. Industry bodies are playing an important role in ensuring agencies comply. The industry works in line with the Marketing, Advertising and Communications Charter, written into law in 2016.
“The charter propagates true reformation, integration, opportunity and transformation across the industry. Transformation that is not just token, but that spearheads change and results in products, services and communication that are representative.”
This charter, said Dyeshana, “certainly lends itself to creating more diversity and balance in the industry”.
“It also speaks volumes for the transformation that needs to continue within the industry. Clients are also starting to play a big role in terms of agencies’ transformation and putting pressure on them in order to be considered for procurement. These are all important steps to ensure our industry transforms at a quicker pace. Joe Public United is a firm supporter of making this happen.”
Joe Public United chair and founder Owen Maubane and chief executive of Senatla Capital is happy about the company’s BBBEE credentials. He said the shareholding speaks volumes about transformation. “Sixty percent ownership with clear voting rights is not window-dressing. Thirty-four percent of the business has been acquired by a black private equity investment company – Senatla Capital. I am CEO of Senatla Capital and have joined Joe Public as chair.
“Twenty-six percent of the business has been acquired by Ikamva Lakusasa, which is owned by three black executives: Khuthala Gala Holten, Mpume Ngobese and Xolisa Dyeshana. All three have become executive directors of the business.
“Their investment was funded from their own resources, Senatla Capital funding and bank funding. The funding is on commercial terms.”
Joe Public CEO Gareth Leck sees the company as having set the bar high for the industry to emulate. “Being a transformed agency in South Africa has now become a licence to trade. I would argue there has been progress with regards to transformation.
“Having said this, there is still room for improvement and we are committed to walking that road. We believe our new structure is the perfect platform to facilitate our next phase of transformation and we hope it inspires others to follow suit.”
Joe Public shareholding speaks volumes