Nigerian CEOs Among Best Paid in Africa – PwC Report

Bukola Olanrewaju August 6, 2021 BUSINESS Leave a comment

Chief Executive Officiers (CEOs) of Nigerian-listed companies are among sub-Saharan Africa’s highest earners, according to a new remuneration report by PwC.

In the report released yesterday, the accounting firm said that the median value of total-guaranteed packages, which includes base pay and benefits, for the heads of Nigerian companies is $323,000.

That’s the highest among seven sub-Saharan African countries excluding South Africa and is based on data published by 382 companies, it said. Chief financial officers in Nigeria are also among the best paid in the region, with median earnings of $219,000, according to PwC.

Nigeria is home to the continent’s biggest building- materials producer, Dangote Cement Plc, owned by Africa’s richest man, Aliko Dangote.

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The country has the biggest companies by market value on the continent, outside South Africa, in the food and beverage, banking and energy industries, through Nestle Nigeria plc, Guaranty Trust Holding Co and Seplat Energy plc. However, the market capitalisation of Nigeria’s stock exchange is $49 billion, compared with South Africa’s $1.1 trillion boyrse, which boasts the biggest listed company in Africa, Naspers.

The market capitalization of Nigeria’s stock exchange is $49 billion, compared with South Africa’s $1.1 trillion bourse, which boasts the biggest listed company in Africa, Naspers Ltd. South Africa is also home to some of the world’s biggest mining companies, like BHP Group Plc, Anglo American Plc and Glencore Plc, which represent more than 20% of total market capitalization on the benchmark FTSE/JSE Africa All Share Index.

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A separate analysis of companies listed on the Johannesburg Stock Exchange showed a median pay of 5.17 million rand ($359,265) for chief executives across all industries and 3.34 million rand for chief financial officers, according to the consultancy. PwC omitted percentage changes in annual compensation due to the unquantified impact of Covid-19 and its analysis excludes long-term incentives, leaving some South African executives looking poorer.

“The time has come for leaders to step forward, take action and actively address fair pay in their organisation,” said Andreas Horak, PwC’s reward practice co-lead. It is critical for leaders to be seen as “committed to creating working environments in which all employees are valued and rewarded and have equal opportunities to grow, develop and flourish,” he said.