CEOs of public-owned companies’ in Nigeria rank among the highest remunerated in sub-Saharan Africa, data from a new study by professional services company PricewaterhouseCoopers (PwC) revealed on Friday.
The consolidated compensation packages of CEOs in Africa’s largest economy, when elements like base pay and benefits are factored in, average $323,000, said PwC.
The report spotlighted 162 Nigerian quoted companies, the largest representation coming from the financial industry with 45 firms.
Coming top of those of seven countries from the region without South Africa, the median figure derives from statistics gleaned from publications by companies numbering 382.
Average earnings of $219,000 equally put chief financial officers (CFOs) in Nigeria among those receiving most pay in sub-Saharan Africa, according to the document.
Nigeria, the base of Africa’s biggest building materials maker Dangote Cement Plc, is second to South Africa in terms of the most capitalised companies on the continent in sectors like oil & gas, banking and food & beverage, where Seplat Energy, Guaranty Trust Holding Plc and Nestle Nigeria Plc are leaders in that order.
Lagos-based Nigerian Exchange Limited, at a market capitalisation of $49 billion on Thursday, is Africa’s second biggest, but that means it is more than twenty two times smaller than Johannesburg Stock Exchange (JSE), currently valued at $1.1 trillion.
South Africa, home to the biggest public-owned company in Africa Naspers Limited, has a couple of the foremost mining firms in the world including Anglo American Plc, PHP Group Plc and Glencore Plc all making up more than one-fifth of total market value on the benchmark FTSE/JSE Africa All Share Index.
Another section of the PwC remuneration report, exploring corporations on the JSE highlights the average pay of 5.17 million rand ($395,265) for chiefs across all sectors and 3.34 million rand for CFOs.
“The time has come for leaders to step forward, take action and actively address fair pay in their organization,” Andreas Horak, who co-heads PwC’s reward practice unit, said. He highlighted the importance of the perception about leadership being “committed to creating working environments in which all employees are valued and rewarded and have equal opportunities to grow, develop and flourish.”