The determination of Executive Remuneration has become a complex, emotive and challenging exercise. This is due in equal measures to the general awareness and high profile of executive earnings, the desire for good corporate governance and the critical need to attract and retain people of high calibre to run top companies.

Organizational success is very dependent on executives with vision and operational effectiveness in a volatile, high risk and highly innovative environment. It is becoming increasingly difficult to attract and retain such executives. It has become critical to have an industry specific executive survey due to the unique challenges of the IT sector. The demand for top performers is especially high in the current economic environment since organizations rely heavily on the key executives to grow top-line revenue and improve margins.

The 6th publication of LMO Executive Remuneration Survey for the Information Technology Sector was published in February 2008. The survey enables you to:

• Manage executive reward effectively
• Develop remuneration strategies that support organization strategies
• Benchmark your senior positions against a national norm of leading IT organizations.
• Compare your executives’ earnings (fixed and variable) with jobs of similar size, complexity and function.

Positions and Job Matching

The underpinning methodology that ensures valid job matches across functions and organizations is LMO’s executive job sizing system called EXSYS that has been designed to assess the size and complexities of executive level positions. EXSYS accurately reflects hierarchies within the organization and give most accurate results across companies ensuring the accurate assessment of job complexity. It enables organizations to establish internal equity and external competitiveness with comparable jobs nationally and internationally.

Jobs may by matched on function – all major functional areas are covered, and/or level as determined by EXSYS – ensuring market rates can be determined for typical positions i.e. CEO, Finance, HR, Marketing etc., and those that are difficult to match i.e. solution design, consulting, business development, project management, etc.

Scope of the Survey

Executive level jobs typically comprise the head of the organization e.g. CEO, Country Manager and the first level reporting to this position in single unit stand-alone organizations. In group organizations the Head of Subsidiaries, Divisions and Business Units plus their first line would be considered executives.

Survey Content

• Remuneration tables comprise of individual executive competitive assessment in terms of the EXSYS score on the following data components:

• Annual Basic Salary
• Guaranteed Remuneration
• Actual and On-target Incentives
• Total Package

• Benchmark survey tables on a variety of job functions and families.

• Pay review and remuneration trends. Issues linked to executive remuneration are analysed and reported. This includes economic trends, market moves and forecasts.

Modus Operandi

On confirming participation LMO will spend time with the organization understanding the organizational structure, its size and complexity. The jobs for submission to the survey will be graded in terms of the EXSYS job sizing system. Personal face-to-face interviews are conducted either with the job incumbents or someone knowledgeable of the jobs.

Participants

• Is representative of Major Multi-national companies operating in the IT Industry.

Timing

The survey is produced in February of every year. Contact For further information please contact Olof van Schalkwijk

• Telephone: +27 11 678 1158
• e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it