{"id":491471,"date":"2021-05-18T15:17:15","date_gmt":"2021-05-18T13:17:15","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=491471"},"modified":"2021-05-18T15:17:15","modified_gmt":"2021-05-18T13:17:15","slug":"new-wage-law-planned-for-south-africa-wants-to-clamp-down-on-excessive-director-pay","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/491471\/new-wage-law-planned-for-south-africa-wants-to-clamp-down-on-excessive-director-pay\/","title":{"rendered":"New wage law planned for South Africa wants to clamp down on ‘excessive’ director pay"},"content":{"rendered":"

Trade and Industry minister Ebrahim Patel says that his department is finalising new legislation which aims to narrow the earnings gap between company executives and the lowest-paid workers.<\/p>\n

Presenting his departmental budget speech on Tuesday (18 May), Patel said the new bill will be finalised within the next two months.<\/p>\n

He said that the draft legislation will require disclosure of wage differentials in companies, stronger governance on excessive director pay, and enhanced transparency on ownership and financial records, he said.<\/p>\n

South Africa is one of the world\u2019s most unequal nations, a legacy of the system of racial discrimination that disadvantaged the Black majority and ended in 1994, Bloomberg<\/a> <\/strong>reported.<\/p>\n

Chief executives and top lawyers can make in excess of R20 million a year, while the official minimum wage is just over R20 an hour.<\/p>\n

April data from BankservAfrica’s Take-home Pay Index (BTPI) shows that the average salary is currently R15,092<\/strong> in nominal terms\u00a0and\u00a0R12,749<\/strong> in real terms.<\/p>\n

Data published by PwC<\/a> <\/strong>at the end of 2020, meanwhile, shows that the Median Total Guaranteed Package (TGP) for a JSE chief executive is R5,242,000<\/strong>\u00a0pre-tax. This drops down to\u00a0R2,833,100<\/strong>\u00a0post-tax.<\/p>\n

The report shows that the chief executive salaries are significantly higher at large-cap companies such as the JSE’s top 10.<\/p>\n

The Median Total Guaranteed Package (TGP) for a JSE chief executive at a JSE top 10 company is\u00a0R23,600,000<\/strong>\u00a0pre-tax. This drops down to\u00a0R12,990,000<\/strong>\u00a0post-tax.<\/p>\n

The JSE’s top 10 listed companies are predominantly companies whose primary operations are based in foreign territories and as a result the respective CEOs are remunerated in foreign currency terms, PwC said.<\/p>\n

\n

Read: Government to review BEE rules for South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Trade and Industry minister Ebrahim Patel says that his department is finalising new legislation which aims to further narrow the earnings gap between company executives and the lowest-paid workers.<\/p>\n","protected":false},"author":10,"featured_media":467482,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-491471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/491471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=491471"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/491471\/revisions"}],"predecessor-version":[{"id":491483,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/491471\/revisions\/491483"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/467482"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=491471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=491471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=491471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}