Khokhela’s 2025 Directors’ Remuneration Report provides an in-depth view of how executive and board pay has evolved across JSE-listed companies over the past six years. Based on data from more than 170 companies across multiple industries, the report identifies key trends shaping remuneration practices and governance in South Africa. The following newsletter provides a brief look at major trends that illustrate how pay practices are evolving.
Shift to Variable Pay and LTIPs
The report highlights a decisive shift from guaranteed pay towards variable pay and especially long-term incentives (LTIs). For CEOs, LTIs have increased by more than 200% since 2019, while CFOs saw an increase of over 130% in the same period. This sharp growth reflects sustained shareholder pressure for stronger alignment between executive reward and company performance. More than 60% of CEOs and CFOs now receive LTIs, compared to just over a third six years ago, signalling a structural shift in remuneration design. Beyond the numbers, this trend indicates that boards are prioritising long-term value creation and accountability, ensuring that leadership rewards are tied more closely to delivering sustainable results for shareholders.
Company Size as a Key Salary Driver
Company size remains the primary driver of executive pay. Larger businesses, particularly those with international operations, continue to offer significantly higher packages to CEOs and CFOs. The data shows that market cap directly influences remuneration, with the largest companies paying well above their smaller peers. This reflects not only the added complexity of running businesses with a broad geographic reach, but also the heightened strategic, financial, and reputational risks associated with large corporates. Industry differences are often secondary to size, underscoring that scale, rather than sector, is the dominant factor shaping executive remuneration.
Rising NED Fees and Responsibilities
Non-executive directors (NEDs) also experienced marked increases in their fees. NECs saw a 33.5% jump, largely due to a structural move to all-inclusive fees, while broader NED increases reflect heavier meeting schedules and expanded governance demands. The complexity of industries such as Basic Materials and Financials continues to attract the highest fees, with global recruitment adding further upward pressure.
Leadership Stability Post-Covid
After several years of high turnover, executive tenures appear to be stabilising. In 2024, 47% of CEOs and 41% of CFOs had been in office for six or more years. This suggests boards are focusing on continuity and steady leadership, moving away from the earlier cycle of replacements seen during and after the Covid-19 pandemic.
Khokhela’s 2025 Directors’ Remuneration Report provides an in-depth view of how executive and board pay has evolved across JSE-listed companies over the past six years. Based on data from more than 170 companies across multiple industries, the report identifies key trends shaping remuneration practices and governance in South Africa. The following newsletter provides a brief look at major trends that illustrate how pay practices are evolving
Shift to Variable Pay and LTIPs
The report highlights a decisive shift from guaranteed pay towards variable pay and especially long-term incentives (LTIs). For CEOs, LTIs have increased by more than 200% since 2019, while CFOs saw an increase of over 130% in the same period. This sharp growth reflects sustained shareholder pressure for stronger alignment between executive reward and company performance. More than 60% of CEOs and CFOs now receive LTIs, compared to just over a third six years ago, signalling a structural shift in remuneration design. Beyond the numbers, this trend indicates that boards are prioritising long-term value creation and accountability, ensuring that leadership rewards are tied more closely to delivering sustainable results for shareholders.
Company Size as a Key Salary Driver
Company size remains the primary driver of executive pay. Larger businesses, particularly those with international operations, continue to offer significantly higher packages to CEOs and CFOs. The data shows that market cap directly influences remuneration, with the largest companies paying well above their smaller peers. This reflects not only the added complexity of running businesses with a broad geographic reach, but also the heightened strategic, financial, and reputational risks associated with large corporates. Industry differences are often secondary to size, underscoring that scale, rather than sector, is the dominant factor shaping executive remuneration.
Rising NED Fees and Responsibilities
Non-executive directors (NEDs) also experienced marked increases in their fees. NECs saw a 33.5% jump, largely due to a structural move to all-inclusive fees, while broader NED increases reflect heavier meeting schedules and expanded governance demands. The complexity of industries such as Basic Materials and Financials continues to attract the highest fees, with global recruitment adding further upward pressure.
Leadership Stability Post-Covid
After several years of high turnover, executive tenures appear to be stabilising. In 2024, 47% of CEOs and 41% of CFOs had been in office for six or more years. This suggests boards are focusing on continuity and steady leadership, moving away from the earlier cycle of replacements seen during and after the Covid-19 pandemic.