Type of industry as a pay benchmarking trend, challenge and constraint in executive remuneration.

Abstract

This article takes up the question of executive remuneration with a 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 the inability to benchmark and match similar types of organisations according to the nature of the 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.