South Africa’s millionaire private education bosses – earning R61,000 a day – BusinessTech

Private school education is booming in South Africa, and the CEOs of South Africa’s biggest listed education groups are paid as much as R22.36 million, or R61,000 a day.

Being the CEO of an education company in South Africa comes with significant challenges, particularly in the current economic climate.

While offering high-quality education, private schools in the country are facing immense pressure as the economy struggles and families grapple with rising costs.

These economic difficulties make it harder for parents to afford private school fees, leading to declining enrollment or increased demands for financial assistance.

Curro Holdings, one of South Africa’s big three education groups, noted that young families have been hit hard by the rapid hikes in the cost of living in South Africa, resulting in a reduction in enrolments of learners in the youngest grades of primary schools

Despite this, the demand for private schooling in South Africa is booming due to dissatisfaction with the public education system, which is characterised by overcrowded classrooms, underfunding, and inconsistent quality.

Parents increasingly seek better education opportunities for their children, prioritising smaller class sizes, personalised attention, and enhanced facilities offered by private schools.

Additionally, private schools often offer a wider range of extracurricular activities, better infrastructure, and strong academic performance, attracting middle—and upper-income families.

As safety concerns in public schools grow, private institutions also appeal to parents seeking secure, nurturing environments for their children’s education, further driving demand.

However, this demand, coupled with the current environment, creates a key challenge for CEOs in the education sector, which is balancing financial sustainability with the need to maintain high standards of education.

As operating costs—such as teacher salaries, infrastructure maintenance, and technological upgrades—rise, schools must find innovative ways to keep tuition fees manageable.

This requires creative financial strategies, such as diversifying revenue streams, securing donations, or developing scholarship programs to attract and retain students from a wider range of economic backgrounds.

Additionally, economic hardship in South Africa has led to increased competition in the private education sector. More affordable alternatives, such as online learning platforms and budget private schools, are becoming increasingly attractive to parents who are seeking quality education at lower costs.

CEOs must ensure that their institutions remain competitive, not just in terms of cost, but also in delivering academic excellence and value for money.

Further complicating the role of education CEOs is the expectation to navigate regulatory and compliance issues in a highly regulated environment.

They must ensure that their institutions adhere to government policies while also adapting to rapidly evolving education trends, such as digital transformation and new teaching methodologies.

CEO pay

BusinesTech examined the CEOs of the three biggest education groups listed on the Johannesburg Stock Exchange (JSE) to determine their earnings last year.

These companies are ADvTECH Limited, Curro Holdings Limited, and STADIO Holdings Limited.

ADvTECH’s former Chief Executive Roy Douglas, the top-paid CEO on this list, earned a whopping R22.36 million.

This works out to R430,000 per week and R61,260 per day.

This figure includes base salary, short-term incentives, cash bonuses, benefits, and long-term incentive plans.

This is almost three times the salary paid to Curro’s Cobus Loubser, who took home the ‘smallest’ amount of R8.37 million.

It must be noted that Roy Douglas retired as CEO at the end of February 2024.

“Warm thanks to Roy Douglas for his enormous contribution to ADvTECH’s success during his tenure. He leaves us on a series of highs, both commercially and academically, exemplified by the improvement in margins across the business and the positive movements across all key academic metrics,” said ADvTECH CEO Geoff Whyte.

STADIO’s Chris Vorster was the second-highest earner of the three, taking home R19.71 million, or R54,000 per day.

The table below outlines what these CEOs earned in 2023/24 and how that translates per week.

Read: Alarm bells for jobs in South Africa