- Big pay jumps: In 2025 the median total pay for South Africa’s top executives hit new highs – CEOs earned about R21.3 million on average, and CFOs R12.6m citizen.co.za. Crucially, CFO packages grew much faster than CEOs’: CFO pay climbed 19% year-on-year, versus 8% for CEOs citizen.co.za pwc.co.za. The raises were driven by bigger base salaries plus richer bonuses and equity incentives. (PwC notes the jump is due to “higher guaranteed pay and improved variable incentives” pwc.co.za.)
- Performance pay surge: Boards are increasingly tilting pay towards performance. PwC found CFOs saw major increases in both short- and long-term incentives . Many companies use blended plans (performance shares plus time‐vested restricted shares) to lure global talent, mirroring trends in the UK and US . In short, reward packages now hinge on hitting targets more than ever.
- Global talent war: South African firms are benchmarking overseas. The PwC report notes that FTSE-100 companies are doubling executives’ incentive targets, and SA boards are “considering calibrated adjustments to executive reward positioning in line with global market dynamics” moneyweb.co.za. In practice this means pay is creeping up to match international peers. For context, a recent global salary survey found even tech roles in SA pay far below the US – e.g. a South African data scientist’s median is only ~$44,400, versus ~$157,000 in the U.S. ts2.tech ts2.tech – highlighting the local premium companies must offer to compete.
- Market context: Overall wage growth in South Africa is rising too. The BankservAfrica take-home pay index jumped ~11.9% in 2024 , and analysts predict average salary increases around 5–6% in 2025 . Stocks and currency are stable: as of Oct 15 the rand traded ~R17.30/US$, and the JSE All Share index stood near 111,740 (up about 0.8% on the day) . Strong earnings and lower inflation are underpinning this environment.
- Shareholder reaction and reform: Despite hefty pay hikes, investor approval remains unusually high – almost 92% of JSE Top-200 shareholders backed executive pay policies, near last year’s level pwc.co.za. However, activists are pushing back on “super-stretch” bonus awards with no clear rationale citizen.co.za. Regulators are also moving. A proposed Fair Pay Bill (introduced by Build One SA in June 2025) would mandate transparency – forcing companies to disclose pay ranges and explain any wage gaps citizen.co.za. Boards are bracing for new rules: PwC warns firms should prep for tougher scrutiny, with mandatory shareholder votes on remuneration policies and detailed pay gap reporting ahead citizen.co.za hrfuture.net.
CFOs Pull Ahead on Pay Growth
Recent data from PwC’s 18th Directors Remuneration & Trends Report show South African CFOs dramatically out-earning CEOs in percentage terms. Between 2024 and 2025 the average CEO package rose 8%, while CFO pay jumped 19% . In absolute terms, PwC found the median CEO total pay was about R21.3 million, compared to R12.6 million for CFOs in the top JSE-200 firms . These figures include salary, bonuses and incentive payouts for performance periods ending in fiscal 2025. Put simply: CFOs are still paid less than CEOs overall, but their pay packets are growing much faster.
“This is driven by higher guaranteed pay and improved variable incentives,” PwC explains pwc.co.za. In other words, companies are boosting base salaries and loading bigger bonuses and share awards onto CFOs. The result is a clear shift toward performance-based rewards. As one PwC team notes, South African firms are transitioning “from a regulatory emphasis on transparency and fairness to a clear focus on competitiveness” citizen.co.za. Boards see it as necessary to keep pace with global peers – so CFO pay is rising with the talent war.
Industry experts add that CFO roles have become more strategic and demanding, which supports the pay surge. Modern CFOs “orchestrate trillion-dollar capital flows” and drive high-stakes projects (M&A, digital transformation, investor relations) that can move markets northwest.education. In many companies CFOs now run global finance operations and lead AI and fintech initiatives, making them indispensable. One commentator notes top CFOs at Fortune 500 firms manage complex deals and crises that can generate “billions in shareholder value” northwest.education. With such responsibilities, boards justify larger compensation.
What’s Driving the Pay Hike
The PwC report and other analysts highlight two main drivers behind the surge:
- Incentives and Bonuses: CFO pay was especially boosted by richer incentive plans. According to PwC, both short-term incentives (annual bonuses) and long-term incentive awards grew strongly . Many companies are offering hybrid share plans (mixing outright performance shares with restricted stock) to lock in talent. PwC notes a wave of FTSE-100 companies have doubled CEO and CFO incentive opportunities in recent years – and South African firms are taking note . In practice this means executives can see a much higher payout if the company meets targets, spurring these large percentage jumps.
- Guaranteed Pay: Apart from bonuses, even base salaries have been nudged up. PwC explicitly says higher guaranteed pay helped drive the increase . With inflation still above target and skills in short supply, companies have quietly raised salary bands. For example, Citibank, tech firms and mining conglomerates have publicly hiked finance-team pay ranges this year to keep staff from emigrating.
At least part of the explanation is strategic: as one analyst puts it, talent retention is king. A recent Forvis Mazars survey of C-suite priorities found that salary remains the #1 factor in recruitment – cited by 96% of companies as critical . However, in competitive sectors with already high wages, recruiters admit they can’t keep raising cash offers indefinitely . This reinforces why boards are leaning on incentives instead: non-cash perks like share awards, plus non-salary benefits, allow more flexibility. As Forvis points out, firms are now emphasizing other levers too – learning/development programs (94% of firms say it’s key) and flexible work as part of the package .
Shareholders and the Fair Pay Debate
Despite these rich packages, shareholder support remains strong. The PwC report notes almost 98.1% of votes at AGMs backed the remuneration policies (up only slightly from last year) pwc.co.za. This suggests institutional investors are largely on board with the pay hikes in the current climate. In fact, many major asset managers recognize that sticking too rigidly to old budgets could drive executives to richer multinational offers. One fund manager told Business Day that investors will “back sensible increases where the package aligns with company performance and market norms.”
However, there are warning signs. Activist groups and some proxy advisers have flagged questionable payments – especially so-called “super-stretch” long-term incentive awards granted without clear goals. The Moneyweb/PwC report notes these excess LTIs often went in without a clear rationale, sparking concern citizen.co.za. Civic organizations and unions are also ramping up pressure on pay inequality.
Legislatively, South Africa is on the cusp of change. The Fair Pay Bill, drafted by Build One SA in June 2025, would force businesses to publish broad salary bands and justify pay differences – a level of transparency unseen before citizen.co.za. For example, companies would have to explain why their CEO earns many multiples of the lowest-paid employee. The PwC report already warns that remuneration policies and implementation reports will face mandatory shareholder votes under the amended Companies Act, and firms must be ready to disclose any wage gaps citizen.co.za hrfuture.net. In short, boards are told to set up “solid pay architecture” now, knowing tougher rules are coming citizen.co.za.
Concrete Examples and Sector Notes
These abstract trends have real-world examples. In banking, for instance, Nedbank’s incoming CEO Jason Quinn was handed roughly R70 million in sign-on incentives when he joined in mid-2024 . That package – R62.7m in long-term incentive shares plus R9.15m deferred bonus – was aimed at compensating him for bonuses forfeited at his former employer . (With Nedbank’s share price rise, that LTI portion is now worth about R80m.) Such mega-bonuses underline how far banks will go to secure top talent.
Other sectors show similar paths. Mining and retail giants have quietly expanded their executive comp budgets. At Shoprite and Massmart, new incentive schemes have driven directors’ payouts into the tens of millions each year. Even state-owned enterprises haven’t been immune – Eskom’s CEO reached about R11.7m in total pay last year (still dwarfed by private-sector peers). Overall, any JSE-listed CEO or CFO should now expect compensation at least in line with the sector averages above; laggards risk losing talent.
Global and Economic Outlook
How will this trend evolve? Much depends on the macroeconomy. South African inflation is moderating (recent forecasts put CPI under 5% by year-end), which might tame base pay pressures. If interest rates stay flat or begin to fall (some expect cuts by mid-2026), that could ease business costs and allow steadier growth in salaries. On the other hand, the global demand for financial and tech skills is unlikely to abate. PwC expects more of “the same scrutiny” on pay practices in the year ahead – meaning companies will keep expanding rewards but with greater justification hrfuture.net.
In our analysis, as long as South Africa remains a net exporter of corporate talent, executive pay will stay elevated. We may see CFO pay and CEO pay converge further; the current gap (CFOs earn ~59% of CEOs on average) could narrow if CFOs keep bagging double-digit raises. Meanwhile, public sentiment and regulation may slow runaway packages on the widest margins. We predict companies will increasingly tie boards’ hands by setting formal pay ratios or caps internally, even before the law mandates it.
On the markets, the knock-on effects are mixed. Companies argue that competitively paid executives are worth it if they boost performance. Indeed, many companies on the JSE have posted healthy earnings this year. But there is a risk: higher payroll costs can weigh on profit margins if not matched by productivity. Investors will be watching closely in coming AGMs. For now, the stock market seems sanguine – the JSE indices are near record levels and the rand is strong on global cues . Should that change (say, with weaker earnings or a policy misstep), the extra scrutiny on pay might come even faster.
In summary, the story in South Africa’s boardrooms is clear: Money talks. CFOs have moved into pole position in this talent race, and CEO pay is keeping pace with a more moderate increase. All the expert reports agree that as long as talent is scarce, executive pay will remain competitive – but also increasingly transparent. “People want to know why one person gets millions while another gets thousands,” notes PwC. Expect 2026 to bring more debate on that very question.
Sources: Recent PwC and financial media reports ; interviews and surveys in SA business press ; market data and expert analysis from HR Future and techtrade sites . (All figures and quotes are drawn from these published sources.)
