Business Chief Europe Magazine February 2021 | Page 47

In its latest report , Deloitte reiterates from 2019 that “ executive leadership is generally regarded as a scarce commodity and one for which a premium should be paid .” Those that have gained this seniority via education , experience , innate skills , or a combination of all three , “ generally feel that they should be appropriately rewarded .”

Deloitte expects to see that while executives expect to “ live to a certain standard and prepare for the continuation of this standard into their retirement from active service . Post COVID-19 it will not be surprising if there is a general call amongst stakeholders that ‘ enough is enough ’.”

Commenting on the challenges outlined by Deloitte ’ s 2020 report and reflecting on the future for executive compensation , Tyrone Jansen , Associate Director , Human Capital , Deloitte Consulting Africa , details that “ It largely depends on the situation that a company finds itself in . Executives that perform well ( relative outperformance ), still and should be rewarded well . Expect to see far larger bifurcation between those that are paid well as a result of outperformance versus those that do not perform or perform moderately well . New , simpler , alternate reward strategies may become more common in the short to medium term for firms that require a different means to incentivise and drive certain outcomes and performance .”

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