Proposed Companies Act amendments want executive pay disclosed
Changes have also been proposed with regards to the appointment of auditors
The pay for prescribed officers of companies — typically executives who are in a position to influence management of the enterprise — will have to be disclosed in the audited annual financial statements if proposed amendments to the Companies Act become law. This is one of the mainly technical amendments proposed in the Companies Amendment Bill published in the government gazette last week for public comment.
Norton Rose Fulbright director Stephen Kennedy-Good said the amendments are the first time substantive changes have been proposed to the Companies Act, which became law in 2011. Currently, the act only requires the disclosure of the remuneration and benefits of directors. Kennedy-Good said the proposal to require such disclosure would strengthen transparency and good corporate governance. It would allow shareholders to see what top executives and senior management — including CEOs and CFOs when they are not directors — are being paid. This is in line with international ...
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