COMPANIES AMENDMENT BILL
Department of Trade and Industry still mulling executive payment vote
There is no requirement in the act for any form of vote on a company’s executive remuneration policy
A binding vote on executive remuneration is on the Department of Trade and Industry’s radar but it is not certain it will be included in the Companies Amendment Bill due to be put to the Cabinet next month. MacDonald Netshitenzhe, the chief director of policy and legislation at the Department of Trade and Industry, said some stakeholders were keen to see a binding vote included in the Companies Act but many stakeholders were not. "I’m not sure if it will be included in the amendments, but it is certainly on our radar," Netshitenzhe said on Tuesday. At present, there is no requirement in the act for any form of vote on a company’s executive remuneration policy. The King code recommends that listed companies put a nonbinding resolution to their shareholders to give them an opportunity to indicate their support for the company’s remuneration policy.
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