An archetypical analysis of chief executive officers in the mining sector according to their remuneration and company performance: a resource based view
- Authors: King, Matthew Sebastian
- Date: 2020
- Subjects: Executives -- Salaries, etc. -- South Africa , Directors of corporations -- Salaries, etc. -- South Africa , Mining corporations -- Salaries, etc. -- South Africa , Mines and mineral resources -- Management
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/168503 , vital:41589
- Description: The growth in the mining sector post 1994 saw many CEO s enjoy exorbitant levels of financial prosperity particularly in relation to th e mining workforce . The pay disparity between the remuneration of CEO s and the average worker contributed to instability and labour unrest. While there has been extensive research conducted on the relationship between CEO remuneration and company performance, questions around the justification of exorbitant CEO remuneration levels have persisted. One of the shortcomings of these studies have been understanding company performance as limited to financial indicators. For this reason, Resource - Based theory was used in this study to focus on CEOs as tangible, heterogeneous and immobile assets, who could influence company performance by creating a firm’s competitive advantage. In order to investigate this, a mixed - method research design was utilised to ascertain the relationship between CEO remune ration and company performance. The data for the quantitative study was collected using an archival method by sourcing secondary data obtained from the sampled companie s’ annual integrated reports. Statistical tests were performed to test the relationsh ip between CEO remuneration and company performance of mining companies listed on the JSE over the period of 2014 to 2018. This was followed by the qualitative thematic analysis which utilised online information published about four CEOs sampled according to their pay/performance relationships (namely high earning/high performing; high earning/low performing; low earning/high performing and low earning/low performing). The VRIO framework was utilised in conjunction with the thematic analysis to assess the extent to which each of the selected CEOs could be identified as valuable, rare, inimitable and organised. Finally, t he demographic characteristics and leadership attributes of these CEOs were collectiv ely aligned to particular l eadership archetype s. This study found that despite company performance levels experiencing negative growth and volatility, CEO remuneration remained stable and experienced positive growth throughout the period . The qualitative analysis and the application of the VRIO framework wa s conducted in order to explor e reasons why this disparity may continue to exist. The analysis of the differences in demographic characteristics and leadership attributes between these four CEOs provided a possible j ustification for the disparity in t he levels of remuneration. It was found that some CEOs high levels of remuneration could be justified by virtue of their well - developed leadership skills. In particular CEOs need softer skills (such as communication, openness, relationship - building and stakeholder engagement) and to draw on the communicator, builder and coach archetypes in order to create a sustained competitive advantage within companies.
- Full Text:
- Authors: King, Matthew Sebastian
- Date: 2020
- Subjects: Executives -- Salaries, etc. -- South Africa , Directors of corporations -- Salaries, etc. -- South Africa , Mining corporations -- Salaries, etc. -- South Africa , Mines and mineral resources -- Management
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/168503 , vital:41589
- Description: The growth in the mining sector post 1994 saw many CEO s enjoy exorbitant levels of financial prosperity particularly in relation to th e mining workforce . The pay disparity between the remuneration of CEO s and the average worker contributed to instability and labour unrest. While there has been extensive research conducted on the relationship between CEO remuneration and company performance, questions around the justification of exorbitant CEO remuneration levels have persisted. One of the shortcomings of these studies have been understanding company performance as limited to financial indicators. For this reason, Resource - Based theory was used in this study to focus on CEOs as tangible, heterogeneous and immobile assets, who could influence company performance by creating a firm’s competitive advantage. In order to investigate this, a mixed - method research design was utilised to ascertain the relationship between CEO remune ration and company performance. The data for the quantitative study was collected using an archival method by sourcing secondary data obtained from the sampled companie s’ annual integrated reports. Statistical tests were performed to test the relationsh ip between CEO remuneration and company performance of mining companies listed on the JSE over the period of 2014 to 2018. This was followed by the qualitative thematic analysis which utilised online information published about four CEOs sampled according to their pay/performance relationships (namely high earning/high performing; high earning/low performing; low earning/high performing and low earning/low performing). The VRIO framework was utilised in conjunction with the thematic analysis to assess the extent to which each of the selected CEOs could be identified as valuable, rare, inimitable and organised. Finally, t he demographic characteristics and leadership attributes of these CEOs were collectiv ely aligned to particular l eadership archetype s. This study found that despite company performance levels experiencing negative growth and volatility, CEO remuneration remained stable and experienced positive growth throughout the period . The qualitative analysis and the application of the VRIO framework wa s conducted in order to explor e reasons why this disparity may continue to exist. The analysis of the differences in demographic characteristics and leadership attributes between these four CEOs provided a possible j ustification for the disparity in t he levels of remuneration. It was found that some CEOs high levels of remuneration could be justified by virtue of their well - developed leadership skills. In particular CEOs need softer skills (such as communication, openness, relationship - building and stakeholder engagement) and to draw on the communicator, builder and coach archetypes in order to create a sustained competitive advantage within companies.
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An assessment of own revenue management for financial sustainability of the Eastern Cape municipalities
- Authors: Majikijela, Vuyolwethu
- Date: 2018
- Subjects: Revenue management , Municipal government -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape -- Finance , Municipal government -- South Africa -- Eastern Cape -- Cost effectiveness , Municipal services -- Finance
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/61445 , vital:28027
- Description: The purpose of the research is to assess the financial viability of municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient thus cost benefit theory emphasises that municipality must adopt cost recovery revenue management. The application of cost recovery revenue management requires that municipalities take into account internal and external revenue management challenges that will be factored on user charges. Cost recovery also requires governance to lead the process through capacitation, transparency and communication with all stakeholders. This research highlights that municipalities in the province have not matured to a level wherein they are able to adopt cost recovery revenue management because of prevalent external revenue management challenges caused by high unemployment rate in the province and the slow economic growth. Municipalities in the province are thus financially unsustainable. This research therefore proposes that a phase in approach to cost recovery should be adopted in line with the changes in unemployment and economic growth. Increased transparency and consultation with intergovernmental relations should also be promoted to enable financial sustainability of municipalities in the province.
- Full Text:
- Authors: Majikijela, Vuyolwethu
- Date: 2018
- Subjects: Revenue management , Municipal government -- South Africa -- Eastern Cape , Municipal government -- South Africa -- Eastern Cape -- Finance , Municipal government -- South Africa -- Eastern Cape -- Cost effectiveness , Municipal services -- Finance
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/61445 , vital:28027
- Description: The purpose of the research is to assess the financial viability of municipalities in the Eastern Cape. Municipalities that are not financially viable and sustainable will always struggle to deliver basic services to communities. Without sound financial management systems, municipalities will be forced to discontinue their operations. Municipalities, particularly small and rural ones, are not self-sufficient thus cost benefit theory emphasises that municipality must adopt cost recovery revenue management. The application of cost recovery revenue management requires that municipalities take into account internal and external revenue management challenges that will be factored on user charges. Cost recovery also requires governance to lead the process through capacitation, transparency and communication with all stakeholders. This research highlights that municipalities in the province have not matured to a level wherein they are able to adopt cost recovery revenue management because of prevalent external revenue management challenges caused by high unemployment rate in the province and the slow economic growth. Municipalities in the province are thus financially unsustainable. This research therefore proposes that a phase in approach to cost recovery should be adopted in line with the changes in unemployment and economic growth. Increased transparency and consultation with intergovernmental relations should also be promoted to enable financial sustainability of municipalities in the province.
- Full Text:
Schooling and institution quality linked to earnings in the Eastern Cape
- Authors: Cuthbert, Carol E
- Date: 2018
- Subjects: Wages -- Effect of education on -- South Africa -- Eastern Cape Education, Higher -- Economic aspects -- South Africa -- Eastern Cape Equality -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/62166 , vital:28134
- Description: Return to investment for tertiary education is not equal for all. Human Capital Theory imposes a linear pathway between education and earnings, that fails to recognise other sources of capital, ignores social returns and does not explain why socio-economic variables influence employability and earnings. Those returns, rather than simply incrementally delivering returns for additional years of education, are however heterogeneous across students, with field of study, gender and population group influencing earnings; and schooling type and university attended filtering whether one finds a job. This study utilises data from Rhodes University and the University of Fort Hare, illustrating the extreme positions within the South African education landscape, employing a Heckman selection to predict the returns on education. The regression is found to be partially successful in predicting a graduate’s ability to find a job, in the first instance, and thereafter their returns. It is crucial to analyse the heterogeneity of socio-economic parameters to understand aspects of the economy, and develop education policies to take advantage of this understanding, especially against the backdrop of the student protests being experienced in the country and the funding models proposed. Access to tertiary education, through policy inducement, such as the recent increase of the grant limit from R122 000 to R350 000, requires disaggregated returns to education to be investigated.
- Full Text:
- Authors: Cuthbert, Carol E
- Date: 2018
- Subjects: Wages -- Effect of education on -- South Africa -- Eastern Cape Education, Higher -- Economic aspects -- South Africa -- Eastern Cape Equality -- South Africa -- Eastern Cape
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/62166 , vital:28134
- Description: Return to investment for tertiary education is not equal for all. Human Capital Theory imposes a linear pathway between education and earnings, that fails to recognise other sources of capital, ignores social returns and does not explain why socio-economic variables influence employability and earnings. Those returns, rather than simply incrementally delivering returns for additional years of education, are however heterogeneous across students, with field of study, gender and population group influencing earnings; and schooling type and university attended filtering whether one finds a job. This study utilises data from Rhodes University and the University of Fort Hare, illustrating the extreme positions within the South African education landscape, employing a Heckman selection to predict the returns on education. The regression is found to be partially successful in predicting a graduate’s ability to find a job, in the first instance, and thereafter their returns. It is crucial to analyse the heterogeneity of socio-economic parameters to understand aspects of the economy, and develop education policies to take advantage of this understanding, especially against the backdrop of the student protests being experienced in the country and the funding models proposed. Access to tertiary education, through policy inducement, such as the recent increase of the grant limit from R122 000 to R350 000, requires disaggregated returns to education to be investigated.
- Full Text:
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