South Africa to Tackle ‘Injustice’ of Excessive Executive Pay

krycor

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Shouldn’t be much of an issue for most I think.. on the extreme ends this will be but will just lead to outsourcing unskilled or minimally paid labour.

Will be interesting to see what ratio they aiming for. A lot of companies actually target a “reasonable” percentage but then exclude performance bonuses out of the calc thereby skewing things too so gonna be interesting seeing how they structure it.

Btw this is not some unique legislation either.. this is in a few countries for similar reasons.
 

krycor

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Yip! Look at salaries that the cadres in the cANCer pull. Reminds me of the saying "The pot calling the kettle black"

Government and SOE will be fascinating to watch as that employment number end job type differs vastly.
 

Fulcrum29

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As I said in the other thread this should technically only apply to public listed enterprises. As pointed out in the other article, many execs, aren't even paid in Rands. In order to legislate this, it will be tricky as it may result in more businesses setting up their HQ abroad and then be remunerated in that way and capacity.

It would be silly to see them regulate the private earners, then it would be a restriction to the means and this is a possibility with a probability the question is then what does the state want you to do with the money you aren't allowed to earn? Like I said it is tricky.

Like optimised taxes, people will optimise their salaries.
 

SilverCode

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As I said in the other thread this should technically only apply to public listed enterprises. As pointed out in the other article, many execs, aren't even paid in Rands. In order to legislate this, it will be tricky as it may result in more businesses setting up their HQ abroad and then be remunerated in that way and capacity.

It would be silly to see them regulate the private earners, then it would be a restriction to the means and this is a possibility with a probability the question is then what does the state want you to do with the money you aren't allowed to earn? Like I said it is tricky.

Like optimised taxes, people will optimise their salaries.
It is a good point. I can see more big wigs lowering their anual salary to whatever matches the highest they can go without triggering an EFF meltdown, and then taking the rest of their money in stocks, bonuses and other company expenses.

Over all it just sounds like the ANC is trying to make sure they scare off Big Business as much as possible. I'm all for companies not abusing and taking advantage of people, but in SA the little people bully the country via the unions, and the ANC is their arms dealer.
 

2021

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‘Duties to prepare directors’ remuneration report’. If enacted, the changes will require public companies and state-owned entities (SOEs) to disclose the details of the highest and lowest paid employees in the company.

Will this actually change anything?
 

Fulcrum29

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Will this actually change anything?
It will create realistic transformational speaking points. Easier to point at something than to allude about something. It is a means to an end.
 

system32

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Chief executives and top lawyers can make in excess of 20 million rand ($1.4 million) a year, while the official minimum wage is just over 20 rand an hour.

$1.4m is that a lot for a good CEO in UK/EU/USA/Japan/Canada?
 

vigras rojara

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Chief executives and top lawyers can make in excess of 20 million rand ($1.4 million) a year, while the official minimum wage is just over 20 rand an hour.

$1.4m is that a lot for a good CEO in UK/EU/USA/Japan/Canada?

Not particularly.

Also need to bear in mind that a lot of executive remuneration comes from share options vesting and not just from base pay, so while comparisons with the plebs might be meaningful they are not straightforward.
 

cguy

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Chief executives and top lawyers can make in excess of 20 million rand ($1.4 million) a year, while the official minimum wage is just over 20 rand an hour.

$1.4m is that a lot for a good CEO in UK/EU/USA/Japan/Canada?
There are software developers who are paid more than that.
 

cguy

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It’s really hard to understand why the CFO of a mining company should be paid less than a CFO of a software company, just because software developers are paid more than miners. The net result seems as though the companies with lower paid workers will end up with the executives that nobody else wants. This is hardly good for them either.
 

Creag

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Well if they start capping executive pay, the good executives will get jobs in a less marxist country.
This is what I came to say. Maybe their salaries and packages feel hefty. The reality is that companies want to attract quality leaders who will take their companies on to greater things, make difficult choices, etc. Pay peanuts, it is what what you'll get. Capping their earning ability in the private workplace is just pure insanity!
 

grok

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As long as they do the same between politicians' pay and those of their supporters..
 

Cosmik Debris

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lets start off looking at salaries and benefits of members of parliament vs that of nurses / police / fire fighters

The lowest paid are the Government EPWP workers at R11 an hour. Compare that to the 29 000 millionaire civil service workers.
 

Cosmik Debris

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How do you grow an economy when you see your major trading partners as the enemy; the productive private sector in overtly political terms; a small tax payers base as subjects/servants of the state; patronize large parts of your population and alienate minorities; want state led development amidst never ending corruption, incompetence and bureaucratic inefficiency; and your top thinkers/stewards are still stuck in 1970s Marxism?
 
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