The actual compensation almost always differs from the number we see as a news headline.
As triggering as some conversations can be, it is important that they be had. And more important than having the conversation is understanding what is being conveyed. It’s easy to read to respond or to be offended, but it’s not so easy to read something sensitive with understanding.
And, regardless of whether you’re in the capitalist or socialist camp, headlines stating that CEOs earned R300 million in one year can often be misleading and sensationalised for clickbait or sales purposes.There are usually two main components to executive pay: a fixed component and a variable component. And there is a real, tangible difference between the two.
And more often than not, our anger towards what we may deem excessive is based on forgetting that the remuneration of executives is negotiated prior to them rendering the performance.If the company, under the CEO’s leadership, does not achieve the targets and deliverables set out for the incentives to be awarded, then only the CEO will lose out.
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