Shoprite CEO's pay soars to R83m, while Woolworths CEO gets R57m cut
"The key issue in a country like South Africa is how do you get paid that much but your employees don't?"
Picture: @ bowie15/123rf.com
Stephen Grootes interviews Andrew Woodburn, Managing Director at Amrop Woodburn Mann and Kagiso Pooe, Public Policy specialist at Wits School of Governance.
Listen below.
According to reports, Shoprite CEO Pieter Engelbrecht received a total compensation package of R83 million in 2024, reflecting an increase of approximately R20 million from the previous year.
In contrast, Roy Bagattini, CEO of Woolworths, experienced a significant pay cut, taking home R65 million this year after earning R122.5 million the year before – a dramatic reduction of R57 million.
While Woodburn does not seek to justify these salaries, he acknowledges the challenge boards face in both attracting top talent, which often requires substantial compensation, and retaining them.
He adds that the remuneration committee is tasked with the difficult responsibility of effectively linking executive performance to their pay.
"At the end of the day, executives aren't robots – they don't come with a guarantee and they can't manage everything."
- Andrew Woodburn, Managing Director – Amrop Woodburn Mann
Pooe argues that, given the high levels of poverty and unemployment in South Africa, the extravagant paychecks of a select few project a negative image to the broader society.
He emphasises that the core issue is the stark disparity between the compensation of these top executives and that of the average employee.
"The key issue in a country like South Africa is how do you get paid that much but your employees don't?"
- Kagiso Pooe, Public Policy specialist – Wits School of Governance
Scroll up to the audio player to listen to the interview.