IDEAS home Printed from https://ideas.repec.org/a/taf/rsarxx/v36y2022i3p195-212.html
   My bibliography  Save this article

A multi-stakeholder view on director remuneration guidance in South Africa

Author

Listed:
  • Marilee van Zyl
  • Nadia Mans-Kemp

Abstract

Purpose: Given South Africa’s well-developed governance framework, considerable wage inequality and sizeable executive packages, this study was conducted to reflect on the aptness and application of the King IV director remuneration guidelines.Design: The views of 23 representatives of institutional investors, remuneration committee members and leading executives of financial services companies were gauged on the King IV remuneration recommendations by conducting semi-structured interviews. The primary data were analysed by conducting thematic analysis.Findings: The participants commended the heightened focus on pay-related transparency and reporting quality evident in King IV, in particular the three-part remuneration report and single pay figure disclosure. Participants urged remuneration committees to link executive pay to the six capitals.Practical implications: Government and the Institute of Directors in South Africa should account for the considerable regulatory burden that companies are experiencing when amending remuneration-related regulation in future. More guidance is required to link sustainability considerations to executive emolument. A corporate culture which promotes fair remuneration would benefit multiple stakeholders. Focus should be placed on equal pay for work of equal value.Value: The views of powerful and informed stakeholder representatives were gauged on responsible and transparent remuneration practices in an emerging market with severe pay inequality.

Suggested Citation

  • Marilee van Zyl & Nadia Mans-Kemp, 2022. "A multi-stakeholder view on director remuneration guidance in South Africa," South African Journal of Accounting Research, Taylor & Francis Journals, vol. 36(3), pages 195-212, September.
  • Handle: RePEc:taf:rsarxx:v:36:y:2022:i:3:p:195-212
    DOI: 10.1080/10291954.2021.1938882
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10291954.2021.1938882
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/10291954.2021.1938882?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rsarxx:v:36:y:2022:i:3:p:195-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rsar .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.