SA’s corporate governance trails world rivals
The extent to which South Africa lags behind its international peers when it comes to corporate stakeholder rights was highlighted in last week’s release by the European Commission of new legislative proposals dealing with shareholder rights. The EU is proposing that shareholders be given binding votes on executive pay and that companies set maximum pay levels and explain how their pay policies contribute to long-term sustainability.
Commentators note that this large and growing gap between South Africa’s largely voluntary corporate governance system and that of its global peers is inappropriate given that South Africa executive pay scales are at least equal to the top international scales. Continue Reading