Executive remuneration may be on amendment bill agenda
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Government getting involved in what is essentially private companies owned by shareholders and not the state is very worrying. The start may seem mild but once started who knows where it will go. I strongly believe government must leave executive remuneration to the shareholders and encourage the guidelines such a King IV and JSE to drive the change. The debate has become real and is in almost every boardroom and remuneration committee. There is no quick fix by making laws. The unintended consequences of government involvement can be massive. Executives and companies are mobile … they do not have to keep their offices in South Africa. Let’s rather work towards making executive pay properly linked to performance and define performance in a broader term than just Profit.