Are salaries of SA’s CEOs justified?
LISTENING to the radio talk shows on Workers’ Day, just about all the callers, together with the show’s host, expressed their oh-so-narrow opinions on the labour strike at the Sibanye-Stillwater mining group, which is the world’s leading producer of platinum, second largest primary producer of palladium and third largest producer of gold.
South Africa’s mining industry is a major contributor to the economy and, more importantly, a major employer of labour in the country.
The theme of the callers, led by the presenters, was the issue of the strikers’ demands for a higher wage increase, which falls short of their demands.
A fair wage together with increases for workers is certainly justified, but the conversation over the radio waves was narrow, without consideration of all factors around the strike.
The constant argument was the disparity between the payment of R300 million to the Sibanye-Stillwater CEO and the offer to the labour unions.
Let’s try to get some perspective on the earnings of people who lead and create wealth and, more importantly, jobs – the earnings of the CEOs of the world’s leading companies:
♦Amazon CEO Andy Jassy is reported to earn $212 million (R3.3 billion)
♦Google CEO Sundar Pichai is reported to earn $280m (R4.2bn)
♦Elon Musk, $11bn (R1.6 trillion)
♦Bristol Myers CEO Giovanni Caforio is reported to earn $20m (R315m)
♦Sibanye-Stillwater CEO Neal Froneman is reported to earn R300m.
As CEO of the world’s leading mining company, Froneman falls way short of his peers at the world’s leading companies, yet his company employs more than 30 000 people in a country where the unemployment figures are a staggering 34% but unofficial numbers are estimated at around 50%.
The wage increase offered falls short of R150, but at least these workers would get an increase in an environment that’s shedding jobs.
At least Sibanye-Stillwater adds great value to the country besides employing more than 30 000 people providing a living to very much more than that number, income to the country in taxation.
What value has the theft of the trillions looted by the ANC to the country? Zip!