EOH CEO explains why staff take a salary hit while execs score millions

Murmaider

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You know a business has gone astray when management views their staff as commodities, rather than the individuals who helped build their business and keep it running.
 

R13...

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the share incentives they get are way higher than any cash bonus
Way higher?
Van Coller got R4m in STI and R6m in LTI. Sure on maturity it might be higher but he could just as easily invest the STI. The other guy got R2m in STI and no LTI in 2020.
 

KikzAzz

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Is what back seat drivers say. Would be interesting to see how well a business does removing the CEO's and let the employees run it.
I company also means nothing without it's employees. The Chief Executives provides the strategy, but ultimately it it the employees that does the work. They are the ones that on a daily basis deals with the customers and services them. Without that, the CEO won't have a successful company.

Backseat driver? Really??
 

Gnome

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I don't get this, why are people not just leaving the company. They are being screwed over by their management. What the EOH CEO is doing is unethical and pretty much broke all the trust. But I wouldn't say what he did is illegal. Just means you are working for a company and business exec that is willing to lie to you and walk all over you. Do the smart thing, move on.
 

R13...

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I don't get this, why are people not just leaving the company. They are being screwed over by their management. What the EOH CEO is doing is unethical and pretty much broke all the trust. But I wouldn't say what he did is illegal. Just means you are working for a company and business exec that is willing to lie to you and walk all over you. Do the smart thing, move on.
I'm sure those who are able to find alternative employment are leaving. The rest have to stay due to a shortage of jobs. That's even before the pandemic forced most clients to scale back.
 

RedViking

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I company also means nothing without it's employees. The Chief Executives provides the strategy, but ultimately it it the employees that does the work. They are the ones that on a daily basis deals with the customers and services them. Without that, the CEO won't have a successful company.

Backseat driver? Really??
Modern companies can do a lot with a lot less, implementing better technologies and project management, cutting workforce sometimes in half if not more. People don't realise how disposable they are in the age of the technology. Employ 10 people with good skills managing machines and software, paying them above average, doing the work it would have taken for 50 employees.

CEO's getting massive salaries and bonuses is questionable. But at the same time, distributing that to the employees will have a greater negative impact long term for the company and its sustainability.

The biggest problem is rather the fact that there are no alternative opportunities in SA. If you lose your job, for many it is the end of their career and income. And we can blame the government for that.

Is it unfair, of course. But CEO's getting paid a lot does not mean a company can sustain on the same amount employees with higher salaries.

The problem is so much bigger than just directors and CEO's getting paid millions.
 

Kryptonite

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i am ok with them getting their bonuses.........they kept the company afloat and simply deferred increases, they gave 13th cheques to staff.............when no one else got bonuses they got 13th cheques...........id' stfu if i was an EOH employee.................you guys got it good.
 

Scooby_Doo

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i am ok with them getting their bonuses.........they kept the company afloat and simply deferred increases, they gave 13th cheques to staff.............when no one else got bonuses they got 13th cheques...........id' stfu if i was an EOH employee.................you guys got it good.

As an EOH employee, no increase last year, no bonus, no 13th.

So shhh.
 

Barbarian Conan

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I company also means nothing without it's employees. The Chief Executives provides the strategy, but ultimately it it the employees that does the work. They are the ones that on a daily basis deals with the customers and services them. Without that, the CEO won't have a successful company.

Backseat driver? Really??

True, but the CEO has a much bigger influence.
For an extreme example, look at Apple with Steve Jobs, then Apple after they fired him, and then Apple again after he returned.

You do occasionally get star employees, engineers, architects etc who make a big difference. IF it aligns with the strategy of the CEO.

Also, part of the CEOs job is to ensure that they have the employees capable and motivated to execute the strategy. "Without the employees... " is just another way of saying that the CEO wasn't good at their job.
 

JohnStarr

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Top management taking care of themselves. Fire a few people, stop bonuses for employees below them, stop increases for the same people...leads to savings and their own ironic big bonuses.

@mybb...did EOH staff take a salary hike, and how did this affect the guys earning the big ZARs??? Did they also take huge cuts?
 

Sodan

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Dear EOH CEO, and all people everywhere in any kind of leadership position:


If you can't implement that, do not accept the responsibility of being in a position of leadership. And that's all I have to say about that.
 

The Darkness

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Technically, they did make executive decisions that saved the company money, so their rewards are justified. Employees shouldn't get bonuses. What is important about them?

 

silentc

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Is what back seat drivers say. Would be interesting to see how well a business does removing the CEO's and let the employees run it.
Lets see how well the business runs without employees doing the work that clients pay for.
That sword cuts both ways. If you have crap management or crap staff, the business is headed one way
 

krycor

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Old school "White male privilege"

So they care if these people leave, but don't give a damn if any of their other employees leave. It must be nice to be part of the little boys club.

Lets see how well the business runs without employees doing the work that clients pay for.
That sword cuts both ways. If you have crap management or crap staff, the business is headed one way

So part of a broader problem with structural income inequality in SA and it’s not easily fixed. In other markets, ironically where SA folk flee too, like Nzl, Cad, Ned have actual rules on what quantum management can earn.

This cuts both ways.. some argue this means top talent will leave to earn better abroad while others argue it slows the brain drain of skilled specialists which are becoming more valuable than management. Some countries recognize this especially far from or close to large economies which have more attractive income offerings. Work-Life balance is always pushed as a solve all along with regulatory changes to keep disparity low(SA doesn’t push the latter.. we model on a when u get there u chow.. this is partly why fraud and corruption ironically is more common as people realize they not gonna get there and you can’t get back time put in).

So eg in Nzl you don’t really want to be in management of staff as failure in the company or inefficiencies mean you held to account. In SA they hold the staff responsible and only years down the line consider shaking up the processes and procedures within the company esp when there is a merger/acquisition and the larger corp entity does their due diligence.

Why SA hasn’t transitioned away entirely from the management structure stuff.. no clue in the larger corps u see them doing away with it with and rather running many teams & leads etc but yah.. the management thing in SA is silly.
 

R13...

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Technically, they did make executive decisions that saved the company money, so their rewards are justified. Employees shouldn't get bonuses. What is important about them?

No employees no company no money no bonuses. And it's more true for EOH as their assets are human capital. They may try to replace the employees but they'd be lost by the time they spin up a new set of people.
 

Murmaider

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@krycor - you actually bring up a valid point here.

What's ironic is that all of EOH's problems and illegal activities have happened at the management level.

So right now management is "punishing" the work force because of managements inability to run a clean business. Yet rewarding themselves generously. When does management take accountability for the problems they have created for themselves?
 
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