Failure by the JSE or the King Code to take a more robust stance on executive remuneration could see this controversial issue put on the agenda of the Companies Amendment Bill due to be presented to Parliament in the 2016-17 session. Making a vote on executive remuneration a binding one, as well as disclosure of pay ratios between directors, prescribed officers and the company’s workforce, are some of the proposals being looked at by the governance, surveillance and enforcement (GSE) division of the Companies and Intellectual Properties Commission (CIPC). The CIPC, which falls within the Department of Trade and Industry, is responsible for overseeing compliance with the Companies Act. It is also required to recommend to the minister changes to bring the law and its administration up to date and in line with international best practice. South African guidelines and regulations relating to executive pay fall considerably short of best international practice. The most notable is that i...
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