Non Executive Director Remuneration and Other Changes

The following reports now include non executive director remuneration:

• Detailed Directors Report
• Industry Comparison Report
• Individual Company Report

Overview

The Executive Capital survey has been developed as a joint venture between Profile Media and Swicon360 People, and uses Calibr8 Management Technologies’ techniques as the basis for sizing of the companies in the Survey. The factors used in defining company size category include Market Capitalisation, Turnover, Complexity, and Strategic Freedom (the CEO’s level of freedom to act independently).

For many years Swicon360 People has been running an annual Executive Survey and consulting on executive pay trends and issues. ProfileData is a leading electronic data vendor of financial market information and for many years has been capturing into its databases all the relevant annual report information for all JSE listed companies. The Executive Capital Survey is a new joint venture by these two companies to combine their expertise and data, resulting in a definitive offering on executive remuneration.

How to use this guide

The survey shows salary information and statistics that can be viewed per size category for the whole market, or broken down into broad industry categories. All figures are in Rands per annum. In order to ensure large enough samples to provide statistically valid trends, the JSE sectors have been grouped into larger industry groupings. This has been done on the basis of the most likely REMUNERATION markets in which each company operates. A listing of all the companies, showing the JSE and Executive Capital groupings can be seen in the “Individual Company Report” screen.

Additionally, where remuneration has been shown in levels, users will notice that more than one level has been grouped together. Once again this is to ensure valid sample sizes. In the graphs section, where the various paylines are shown, this grouping has not been used, as the line formula technique is not dependent on the data being in “similar sized” buckets.

The bucket, or levels, approach allows users to obtain remuneration data for all companies of similar size to their own, whereas use of the line formula allows for fine-tuning of the information. Using the line formula will allow one to obtain remuneration data on a trend line, which means that if your company falls to the lower or higher end of the “level” category, one can obtain fine tuned remuneration data based on actual evaluated size of the company. At present this is only available to Calbr8 or Hay evaluated companies.

Where there are less than 12 companies in a size and sector category, upper and lower quartile figures will not be produced. It should also be noted that in some cases, where samples are small, one company’s practice can distort figures.

For non-JSE companies subscribing to the survey, within the price of the subscription we will provide the appropriate company size category to facilitate comparisons.