Profits and pay are key corporate governance areas
The UK government has been urged to set up an independent unit to monitor corporate governance. What about SA?
Imagine the Institute of Directors in Southern Africa (IoDSA), Cosatu, the Institute of Chartered Secretaries and the Association for Savings and Investment SA (Asisa) agreeing to a position on corporate governance practices, and in particular executive pay. Then imagine them sitting down and writing a letter urging government to ensure corporate governance obligations and executive pay are policed effectively. Finally, imagine (if you could) them sending that letter to President Jacob Zuma. SA is probably light years away from any of that actually happening. But two weeks ago the equivalent organisations in the UK — IoD, Trades Union Congress, Institute of Company Secretaries and the International Corporate Governance Network, or ICGN — sent just such a letter to Prime Minister Theresa May. To date, action on this front has largely been limited to the occasional outbursts by individual investment institutions or shareholders pitching up at AGMs. (In a recent encouraging development...
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