Orientation: Over the years, the increase in executive remuneration in both the
private sector and state-owned entities (SOEs) has been the subject of intense
discussions. The poor performance of some SOEs with highly remunerated
executives begs the question whether chief executive officers (CEOs) in South
African SOEs deserve the high levels of remuneration they receive.
Research purpose: The main purpose of the study was to determine whether there
is a relationship between CEOs’ remuneration and company performance in South
Africa’s Schedule 2 SOEs.
Motivation for the study: A greater understanding of the relationship between
CEO remuneration and organisational performance would expand knowledge when
developing optimal CEO remuneration systems to ensure sustainability of SOEs in
the South African context. If a relationship exists, it could justify the high
remuneration received by CEOs.
Research design, approach, and method: This quantitative, longitudinal study,
conducted over a nine-year period, collected secondary data from the annual
reports of 18 Schedule 2 SOEs. The primary statistical techniques used in the study
included were OLS multiple regression analysis and correlational analysis on a
pooled dataset.
Main findings/results: The primary finding was that there is a relationship between
CEO remuneration and company performance (mainly an inverse relationship), with
no consistent trend between the constructs. Turnover appears to be an important
component, as it was the most stable measure of company performance during the
study period. The results indicate that the CEOs’ remuneration continued to
increase, even when the SOEs were performing poorly.
Practical managerial implications: Since the study focused on the relationship
between CEOs’ remuneration and company performance, it may aid policymakers
in forming new rules and regulations that would help improve the country’s
economic performance while attracting international investors.
Contribution/value-add: The study provides new knowledge to the limited
research available on SOEs in South Africa. Further, this research focused on three different components of CEOs’ remuneration, thereby shedding more light on the
relationship between their remuneration and company performance. / Business Management / PhD (Management Studies)
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/23146 |
| Date | 11 1900 |
| Creators | Bezuidenhout, Magdalena Louise |
| Contributors | Bussin, Mark, Coetzee, Mariëtte |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 1 online resource (xvii, 371 leaves : color illustrations, color tables) |
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