scholarly journals The relationship between the determinants of executive remuneration in South African state-owned enterprises

2020 ◽  
Vol 18 (0) ◽  
Author(s):  
Frans Maloa
Author(s):  
Magda L. Bezuidenhout ◽  
Mark H.R. Bussin ◽  
Mariette Coetzee

Orientation: Over the years, the increase in executive remuneration in state-owned entities (SOEs) has been the subject of intense discussions. The poor performance of some SOEs with highly remunerated executives begs the question of whether chief executive officers in South African SOEs deserve the high levels of remuneration they receive.Research purpose: This study examined the relationship between chief executive remuneration and several measures of company performance across Schedule 2 SOEs within South Africa.Motivation for the study: Notwithstanding the widely publicised poor performance of South African SOEs, their importance and relevance remains evident. Regrettably, the literature on what fundamentally drives their performance is lacking.Research design, approach and method: This quantitative, longitudinal study, conducted over a 9-year period, collected secondary data from the annual reports of 18 Schedule 2 SOEs. The primary statistical technique used in the study was ordinary least square (OLS) multiple regression analysis on a pooled dataset. Chief executive remuneration consisted of fixed salary and total remuneration.Main findings: A relationship was found between chief executive remuneration and company performance, although mainly an inverse relationship.Practical and managerial implications: The improved understanding and knowledge of the relationship between chief executive remuneration and SOE performance may be used by the organisation and HR practitioners to direct and inform strategies for organisational effectiveness and business excellence.Contribution or value-add: This research provides new knowledge to the limited research available on SOEs in South Africa. Further, it reveals an unexplored area of potential research, that is, the importance of irregular, fruitless and wasteful expenditure as a performance measure in SOEs.


1992 ◽  
Vol 33 (3) ◽  
pp. 441-465 ◽  
Author(s):  
Linzi Manicom

Although South African women's history has been growing in volume and sophistication over the past decade, the impact of gender analysis has yet to be felt in mainstream or radical historiography. One reason for this neglect is the way in which the categories of both ‘gender’ and ‘women’ have been conceived – with ‘women’ assumed to have a stable referent and ‘gender’ treated as synonymous with women. Those areas of social life where women are not immediately present have thus remained unreconstructed by the theoretical implications of gender. This is particularly the case with the history of ‘the state’.The article identifies and looks critically at the major paradigms of South African women's and gender history in terms of how the relationship between ‘the state’ and ‘women’ is implicitly or explicitly represented. It argues that the understanding of the category ‘women’ as socially and historically constructed (as evident in more recently published gender history) provides a way of moving beyond the more static or abstractly posed state-versus-women relationship. This requires too that ‘the South African state’ be understood not as unitary or coherent but as institutionally diverse with different objectives being taken up and produced as policy and practice. The project then becomes one of understanding South African state formation as a gendered and gendering process, of exploring the different institutional sites and ruling discourses in which gender identities and categories are constructed.


2015 ◽  
Vol 12 (3) ◽  
pp. 155-163 ◽  
Author(s):  
Frans Maloa

This article takes up the question of executive remuneration with particular focus on the type of industry as a pay benchmarking criterion used in deciding on executive remuneration in the context of South African state-own enterprises (SOEs). Data was analysed qualitatively by means of case study and thematic analysis. The research findings revealed concerns about inability to benchmark and match similar types of organisations according to the nature of business and the type of industry. The recommendation was that the skills set of an executive should be considered as the best benchmarking technique for executives across companies of similar size and complexity in South African SOEs.


2020 ◽  
Vol 18 ◽  
Author(s):  
Craig Carlson ◽  
Mark H.R. Bussin

Orientation: Executive pay has been increasing; however, company performance has not been increasing proportionally. This could be due to an agency problem, resulting in executive pay not aligning with the shareholders’ desired company performance.Research purpose: The purpose of this research was to establish if there was a relationship between the total pay of the chief executive officer and their company’s financial performance in South African Schedule 2 state-owned entities (SOEs).Motivation for the study: A review of literature revealed conflicting views regarding the relationship between executive pay and company financial performance. There were limited studies conducted in South Africa, especially considering SOEs.Research approach/design and method: This research was a quantitative, archival study using 8 years of secondary data from South African Schedule 2 SOEs. Spearman’s rank-order correlation was used to evaluate the relationship.Main findings: One significant weak positive relationship was observed when considering the net profit or loss metric of financial performance. Hence, there was no conclusive relationship between executive pay and company financial performance, which supported the proposition that there is an agency problem in South African SOEs.Practical/managerial implications: There is a distinct need for an all-encompassing SOE legislation framework to standardise pay structure and reporting requirements. Additionally, accurate measures of performance are necessary to overcome the agency problem.Contribution/value-add: This research adds to the limited knowledge base regarding the relationship between executive pay and company financial performance in South African SOEs. It also identified the need to incorporate non-financial metrics to influence executive pay.


2015 ◽  
Vol 13 (1) ◽  
pp. 482-489 ◽  
Author(s):  
Frans Maloa

Executive attributes and group decision making effects are explored in the determination of executive compensation. A purposive sample was drawn, which comprised 20 respondents chosen for their expertise relating to executive remuneration in South African state-owned enterprises (SOEs). The study was carried out by conducting primary data collection through one-to-one interviews. Thematic analysis technique was utilised for data analysis. Findings in this study describe executive compensation as a fit between executive attributes and organisational strategic objectives, and multi-perspective engagement of all critical stakeholders of the organisation which includes internal and external sources.


2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Prevan Moodley ◽  
Francois Rabie

Many gay couples engage in nonmonogamous relationships. Ideas about nonmonogamy have historically been theorised as individual pathology and indicating relational distress. Unlike mixed-sex couples, boundaries for gay couples are often not determined by sexual exclusivity. These relationships are built along a continuum of open and closed, and sexual exclusivity agreements are not restricted to binaries, thus requiring innovation and re-evaluation. Three white South African gay couples were each jointly interviewed about their open relationship, specifically about how this is negotiated. In contrast to research that uses the individual to investigate this topic, this study recruited dyads. The couples recalled the initial endorsement of heteronormative romantic constructions, after which they shifted to psychological restructuring. The dyad, domesticated through the stock image of a white picket fence, moved to a renewed arrangement, protected by “rules” and imperatives. Abbreviated grounded theory strategies led to a core category, “co-creating porous boundaries”, and two themes. First, the couple jointly made heteronormative ideals porous and, second, they reconfigured the relationship through dyadic protection. The overall relationship ideology associated with the white picket fence remained intact despite the micro-innovations through which the original heteronormative patterning was reconfigured.


2008 ◽  
Vol 4 (1) ◽  
pp. 69-90 ◽  
Author(s):  
Yoon Jung Park

AbstractBased on the author's PhD research, this article focuses on the fluid and contested nature of the identities — racial, ethnic, and national — of people of Chinese descent in South Africa in the apartheid and post-apartheid eras. The research focuses on the approximately 12,000-strong community of second-, third-, and fourth-generation South African-born Chinese South Africans. It reveals that Chinese South Africans played an active role in identity construction using Chinese history, myths and culture, albeit within the constraints established by apartheid. During the latter part of apartheid, movement up the socio-economic ladder and gradual social acceptance by white South Africa propelled them into nebulous, interstitial spaces; officially they remained “non-white” but increasingly they were viewed as “honorary whites.” During the late 1970s and 1980s, the South African state attempted to redefine Chinese as “white” but these attempts failed because Chinese South Africans were unwilling to sacrifice their unique ethnic identity, which helped them to survive the more dehumanizing aspects of life under apartheid.


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