A shopfloor worker at Woolworths would have had to work for almost three years to make as much money as that group’s CEO Roy Bagattini made in one day. Photo: Ihsaan Haffejee
By Ann Crotty originally published on GroundUp
IN SUMMARY:
- In 2023, Woolworths CEO Roy Bagattini earned R122.5 million, while the lowest-paid worker at Woolworths made R93,600.
- At Shoprite, CEO Pieter Engelbrecht earned R64.7 million, while the lowest-paid worker made R65,263.
- A shop worker at Woolworths or Shoprite would need to work over three years to earn what their CEO makes in one day.
- The article criticizes the large pay gap between CEOs and workers.
- The idea that high CEO pay is justified due to a smaller supply of CEOs is questioned.
- Shop workers’ wages are kept low by minimum wage laws.
- Fund managers, who should hold CEOs accountable, are often too close to executives to challenge their high pay.
- The Just Share report shows the problem extends beyond Woolworths and Shoprite.
- On average, retail workers need to work nearly two years (21 months) to earn what a CEO makes in one day.
- Across the retail sector, CEOs earn 597 times more than the lowest-paid workers.
- The report calls for:
- Greater transparency about pay.
- A reduction in wage gaps between top executives and workers.
- Fair pay as essential for a more equal and sustainable society.
- The retail sector is the second-largest employer in South Africa, employing 17% of the workforce, making fair pay even more important.
