Author
Listed:
- Gretha Steenkamp
(School of Accountancy, Stellenbosch University, Stellenbosch 7600, South Africa)
- Mareli Dippenaar
(School of Accountancy, Stellenbosch University, Stellenbosch 7600, South Africa)
- Tamzin de Lange
(School of Accountancy, Stellenbosch University, Stellenbosch 7600, South Africa)
- Jenna Frade
(School of Accountancy, Stellenbosch University, Stellenbosch 7600, South Africa)
- Cara Jordaan
(School of Accountancy, Stellenbosch University, Stellenbosch 7600, South Africa)
Abstract
For listed companies, board diversity is often associated with improved decision-making, sustainability and financial performance. However, prior studies have neglected the interplay between board diversity and executive remuneration, especially in developing countries, over extended time horizons, and at the level of individual executives. This study addressed this gap by examining the evolution of board diversity and executive remuneration in South African listed companies from 2002 to 2017. Specifically, it investigated trends in board diversity and the determinants of executive remuneration, with particular attention to gender and ethnic pay gaps. Descriptive and regression analyses were conducted on a dataset comprising 8835 executive-level observations. Findings reveal a steady increase in female and non-white executive representation, possibly to align with societal expectations and remain legitimate. However, persistent gender and ethnic pay gaps were also noted, which might indicate that white and/or male executives are more entrenched and able to extract additional remuneration in line with the managerial power theory. The study contributes to the literature by documenting long-term trends in diversity and remuneration, providing empirical evidence on the influence of demographic attributes on remuneration outcomes, and offering insights for regulators, investors and non-executive directors seeking to advance equity and effective governance.
Suggested Citation
Gretha Steenkamp & Mareli Dippenaar & Tamzin de Lange & Jenna Frade & Cara Jordaan, 2026.
"Equity at the Top: Board Diversity and Executive Remuneration in South Africa,"
JRFM, MDPI, vol. 19(2), pages 1-16, February.
Handle:
RePEc:gam:jjrfmx:v:19:y:2026:i:2:p:109-:d:1855700
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