Mauritian banks pay highest director fees; tourism sector offers lowest pay
A Hay Group study on directors fees in Mauritius reveals that the role with the highest premium is that of the Chairman of the Board in the banking sector, while the tourism sector is the least remunerative for directors in Mauritius. (Image:Wazna Gunga)
The highest paid directorial role is that of the chairman of the board in the banking sector who earns four times more than the national average, according to a study on directors’ fees conducted in Mauritius.
The study was carried out by the Hay Group, an agency that specializes in human resource management, in association with the Mauritius Institute of Directors (MIoD). The report on directors’ fees in Mauritius analyses the remuneration data for non-executive directors (NEDs) from 52 countries representing 612 directorships in Mauritius across a wide range of sectors.
According to the survey on Non-Executive Directors Remuneration in Mauritius, the banking sector is far ahead with remuneration levels exceeding the market average by a whopping 79%. The tourism sector, on the other hand, pays only 65% of the national average.
Listed companies pay 7% over the average, while those not quoted on the stock exchange shell out 10% less than the average.
“Best practice and transparency at the level of directorial remuneration are KEY elements to promote good governance. The study carried out by the Hay Group allows companies to benchmark themselves vis-à-vis the industry average and companies in similar sectors abroad. The study also allows companies to grasp the optimal composition of a board of directors, which must be diversified to favor the best decision-making,” explains Jane Valls, CEO, MIoD.
However, the study serves to show that boards of directors in Mauritius are less diversified than those in Europe or Singapore. Only 4.58% of 612 directorships covered in the survey were held by women. At a board level, only 5.6% of board members are female, while the European average is 21%.
Also, the number of independent directors, at 27.2% in Mauritius, is lower than in Europe, which is 85%, or in Singapore, which is 50%.
“Comparisons were made with studies conducted by the Hay Group at 391 companies in 12 countries of Europe, and 229 companies in Singapore. The remuneration of a chairman in Mauritius is about 2.85 times more than an ordinary director while it is 2.9 in Europe, and 2.3 in Singapore. In Mauritius, directors receive annual fees and allowance for attending board meetings, although only 41.83% of the directors receive such allowances. Numerous companies, in Mauritius as also abroad, eliminate allowances for attendance and concentrate on the annual fees, favoring a simplified structure of remuneration,” highlighted Caroline Piat, Regional Manager of the Hay Group.