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Executive pay and undeserved wealth


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Executive pay and undeserved wealth
The current process for dealing with remuneration-related shareholder dissension is ineffective. Also, thoughts on China’s battle of attrition, and Telkom’s departing CEO’s legacy.
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The Companies Act has such a feeble approach to the issue of executive remuneration it’s led to the belief this part of the act was written by the business community. Image: Shutterstock
It may be time for the regulators, including the JSE, to reconsider how to deal with shareholder opposition to executive remuneration.
As things stand if, at an annual general meeting, more than 25% of shareholders vote against a company’s remuneration policy or its implementation report, the company has to extend an invitation to the dissenting shareholders to engage with it. That is a JSE requirement. There is no such requirement in the Companies Act. The act has taken an entirely feeble approach to the extremely contentious issue of executive remuneration, which has led to the belief that this section of the act was written by the business community.

Related Keywords

China , Alibaba Jack Ma , Sipho Maseko , Jack Ma , Party Of China , Communications Workers Union , Group Reward , President Xi Jinping , Communist Party , சீனா , அலிபாபா பலா மா , பலா மா , கட்சி ஆஃப் சீனா , தகவல்தொடர்புகள் தொழிலாளர்கள் தொழிற்சங்கம் , கம்யூனிஸ்ட் கட்சி ,

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