South Africa to Tackle ‘Injustice’ of Excessive Executive Pay
(Bloomberg) -- South Africa is finalizing legislative changes that aim at narrowing the earnings gap between company executives and the lowest-paid workers, according to Trade and Industry Minister Ebrahim Patel.
“A further amendment to company law is required to tackle the gross injustice of excessive pay,” Patel told lawmakers in his department’s budget vote speech on Tuesday. “A new bill that will be finalized within 60 days will require disclosure of wage differentials in companies, stronger governance on excessive director pay and enhanced transparency on ownership and financial records.”
South Africa is one of the world’s most unequal nations, a legacy of the system of racial discrimination that disadvantaged the Black majority and ended in 1994. 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.
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