Research thesis submitted in partial fulfilment (50%) of the
Degree of Master of Commerce
University of the Witwatersrand, Johannesburg, Faculty of Commerce, Law
and Management – School of Accountancy
2015 / Executive remuneration has been under intense scrutiny by both investors and the
media over the past 10 to 20 years because of the increasing magnitude of these
remuneration packages (Otten, 2007; Sapp, 2007). This research report explores
the relationship between executive director remuneration and the performance of
publically listed companies (JSE) in South Africa, as well as ascertaining whether
any relationship exists between director profiles and director remuneration.
The study population comprised all South African companies listed on the JSE
during 2014. The final sample consisted of 49 companies after the transformation of
the data. A total of 708 director profiles were examined. The results of the study
appeared to indicate a lack of correlation between executive director remuneration
and company performance in publically listed South African companies. On the
other hand, the results of the regression provided empirical support for the
existence of a significant positive relationship between director remuneration and
total assets.
The results also illustrated that, in general, directors who are male over the age of
50 and who have served as directors for periods of between six to 10 years receive
higher total remuneration compared to other classes of directors. It was also noted
that race appeared not to play a role in director remuneration.
Key words: Executive director remuneration, executive director profiles, company
performance, ROA, Tobin’s Q / MT2017
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/22157 |
| Date | January 2016 |
| Creators | Naik, Minal |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | Online resource (105 leaves), application/pdf |
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