Executive pay of CEOs increased 9% to R23.1 million in 2026, while short-term bonuses increased 42%, and long-term incentives increased 67%.

In PwC’s 19th Directors Remuneration and Trends Report, the firm analyses remuneration across the JSE Top 200 companies from March 2025 to February 2026.

It notes median pay for CFOs increased by 7% to R13.5 million.

There is a growing scrutiny of the pay of top executives as since May 2026, the Companies Act requires listed firms and state-owned enterprises to report the ratio between the lowest 5% of earners and the top 5% of earners, highlighting the large wage gap between unskilled workers and executive management.

The changes also introduce a binding remuneration vote when shareholders vote on pay at AGMs.

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While there are two votes on pay, if shareholders vote against the implementation report at two AGMs in a row, with support dropping below 50%, the non-executive directors who sit on the remuneration committee are prohibited from serving on it for a two-year period, but may stay on the board.

In its report, PwC recorded growing support by shareholders for executive pay. Support for implementation reports increased from 83.8% in 2025 to 89.6% in 2026.

“There are still areas where shareholders expect companies to do more,” reads the PwC report press release.

“Substantial sign-on awards without performance conditions and large LTI [long-term incentive] grants without adequate rationale also continue to attract scrutiny.”

High increases in bonus pay

Median short-term incentives rose by 42% for CEOs and 39% for CFOs, while median long-term incentive outcomes that reflect pay earned over more than a year increased by 67% and 54% respectively.

The upper quartile of CEOs earned R16.4 million in short-term bonuses, while the median was R9.2 million.

The difference in long-term bonuses awarded to the top 25% of earners and bottom 25% of earners was substantial.

CEOs in the upper quartile surveyed earned R23.4 million in LTIs for the year, while CEOs in the lowest quartile earned R4 million in long-term bonuses.

PwC states that the focus of executive pay has shifted to performance-linked pay.

“The real story is not simply that executive pay has increased, but what is driving it. The increase has come mainly through incentives, particularly long-term incentives, rather than guaranteed pay.

“For boards, the focus now is on making sure reward remains connected to performance and sustainable value creation, while balancing the expectations of executives, employees and shareholders,” says Makhosazana Mabaso, PwC reward partner.

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Non-executive director fees continue to rise

Non-executive director fees also increased during the reporting period. Median board member fees rose by 7.7%, while chairperson fees increased by 6.5%.

Median proposed fees stood at R1.7 million for chairpersons, R1.5 million for deputy chairpersons, R1.2 million for lead independent directors, and R518 000 for board members.

Shareholder support for proposed non-executive director fees remained high at 99.4%, up from 98.1% in the previous reporting period.

The report also provides a broader picture of the typical JSE Top 200 board. On average, boards comprise eight non-executive directors, with an average tenure of 5.5 years.

Of those analysed, 79% are independent, 82% are South African nationals, 64% are male and 55% are African, Coloured or Indian/Asian.