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Public and state-owned companies will have to disclose highest and lowest paid employee salaries. 00:01
The new disclosure requirements could encourage companies to move low-paid employees off their books through the increased use of outsourcing. Image: Shutterstock
The Companies Amendment Bill is expected to make some progress during 2021 after apparently stalling somewhere along the legislative process during 2019 and 2020. Unless watered down before enacted, some of the proposed amendments might prompt a level of restraint so far missing from executive remuneration in South Africa.
One of the most significant sections of the bill, and likely to be one of the most contentious, are the proposed changes to Section 30 of the Companies Act relating to ‘Duties to prepare directorsâ remuneration report’. If enacted, the changes will require public companies and state-owned entities (SOEs) to disclose the details of the highest and lowest paid em