Do the boss and the staff get paid the same?
CURRENT AFFAIRS: THE COMPANIES AMENDMENT BILL 2021
On 1 October 2021 the second draft of the Companies Amendment Bill was published.
One of the proposed amendments is for Public and State-Owned companies in SA to publish the remuneration policies and packages of directors and prescribed officers. The gap between the highest and lowest paid employees in the companies must also be published in terms of The Bill.
The reason for this proposed change is to increase transparency and accountability. However this introduces both pros and cons to this proposed amendment.
It would be beneficial in the sense of addressing the inequalities in our society. Shareholders would have more control over the remuneration packages by voting in the AGM either in favour of or against the remuneration policy of the company thereby implementing more control over this aspect of how the companies are run.
The policies which would be adopted in terms of detailing the remuneration packages of all employees within a company would place South Africa more in line with international good governance principles by attempting to close or rather justify the huge unexplainable pay gap within companies.
However on the other side of the coin, this could also push highly skilled employees to leave public and state-owned companies where their remuneration packages would not need to be justified publicly. In turn this could accentuate the current “brain drain” which is taking place in our country which would unintentionally create additional issues in South Africa.
This proposed legislation could have far reaching consequences for all workers within South Africa, and for the country as a whole.
Article by Mc Naught and Co Inc Attorneys
Associate Sasha Jacobsohn (Sandton Office)
Tel: 0870210123 (national)
maclaw.co.za
Do the boss and the staff get paid the same?
CURRENT AFFAIRS: THE COMPANIES AMENDMENT BILL 2021
On 1 October 2021 the second draft of the Companies Amendment Bill was published.
One of the proposed amendments is for Public and State-Owned companies in SA to publish the remuneration policies and packages of directors and prescribed officers. The gap between the highest and lowest paid employees in the companies must also be published in terms of The Bill.
The reason for this proposed change is to increase transparency and accountability. However this introduces both pros and cons to this proposed amendment.
It would be beneficial in the sense of addressing the inequalities in our society. Shareholders would have more control over the remuneration packages by voting in the AGM either in favour of or against the remuneration policy of the company thereby implementing more control over this aspect of how the companies are run.
The policies which would be adopted in terms of detailing the remuneration packages of all employees within a company would place South Africa more in line with international good governance principles by attempting to close or rather justify the huge unexplainable pay gap within companies.
However on the other side of the coin, this could also push highly skilled employees to leave public and state-owned companies where their remuneration packages would not need to be justified publicly. In turn this could accentuate the current “brain drain” which is taking place in our country which would unintentionally create additional issues in South Africa.
This proposed legislation could have far reaching consequences for all workers within South Africa, and for the country as a whole.
Article by Mc Naught and Co Inc Attorneys
Associate Sasha Jaconsohn (Sandton Office)
Tel: 0870210123 (national)
maclaw.co.za