Wage gap disclosure is gaining traction globally, and SA needs to tread carefully, says Busi Mavuso.
The remuneration of CEOs and other senior executives is a sensitive topic in South Africa given high levels of income inequality – but it’s an important issue globally with perceptions of excessive executive pay in the face of growing concerns over income and wealth inequality.
Since rules came into force in terms of the 2008 Companies Act, public companies have had to provide full disclosure of individual executive and non-executive directors’ total remuneration in their annual financial statements. Now, in terms of the Draft Companies Amendment Bill, listed companies and state-owned enterprises will have to go further, disclosing the percentage differential between the five highest and five lowest earners, as well as aggregate earnings levels.
