Mining sector CEOs in SA are earning staggering salaries
Reports on executive pay from South Africa’s top five mining companies reveal that their CEOs earned staggering amounts in 2023.
Some of the top-earning South African bosses are raking in over three times that of the highest-paid banking CEOs.
The top five listed all come from the mining sector – an industry that added R425.6 billion to the country’s GDP in the last financial year (representing 6.2% of the total GDP).
The mining sector also created over 7 500 jobs, employing a total of 477 000 people, with total wages increasing by 7% to R186.5 billion, despite South Africa’s tough economic climate.
The industry is facing significant challenges, with several mining companies having announced restructuring plans. This is due to issues like reduced electricity availability, freight delays, and falling coal and metal prices.
CEOS WITHSTAND HEADWINDS
Nonetheless, the strong financial performance of the mining industry in 2023 resulted in substantial salaries for its CEOs.
The pay of CEOs from the five largest mining companies listed on the Johannesburg Stock Exchange were analysed by BusinessTech.
These companies are Glencore, BHP Billiton, Anglo American, South32 and Gold Fields.
BHP Billiton’s Chief Executive, Mike Henry, topped the list, earning R249.5 million in 2023. This works out to R684 650 per day.
This total remuneration includes his base salary, short-term incentives, cash bonuses, benefits, and long-term incentive plans.
As a comparison, his earnings are 2.7 times more than Nedbank CEO Mike Brown’s salary of R92 million, and three times more than Standard Bank CEO Sim Tshabalala’s R83 million.
The astronomical figures in the list were also after notable pay cuts for these CEOs (due to the aforementioned economic conditions). Below is a breakdown of their earnings in 2023 and their average daily income:
| No. | CEO | Company | Annual salary | Average daily salary |
| 1. | Mike Henry | BHP Billiton | R249.5 million | R684 650 |
| 2. | Gary Nagle | Glencore | R105.7 million | R289 589 |
| 3. | Duncan Wanblad | Anglo American | R83.1 million | R227 671 |
| 4. | Graham Kerr | South32 | R74.2 million | R203 288 |
| 5. | Martin Preece** | Gold Fields | R51 million | R139 726 |
Table: BusinessTech
**As of 1 January, 2024, Mike Fraser took over as Gold Fields CEO, with Preece continuing as Chief Operating Officer.
CARTIER OWNER RICHEMONT NAMES NEW CHIEF EXEC AS JOHANN RUPERT HANDS OVER DUTIES
In related news, Cartier owner Richemont has named a new CEO as founder and chairman Johann Rupert hands off some of his responsibilities.
According to Forbes’ real-time tracking of billionaires, Johann Rupert and family are the wealthiest in South Africa.
Nicolas Bos, the 51-year-old French head of Richemont’s jewellery brand Van Cleef & Arpels, will start the job on 1 June, the Swiss company said.