earningsMoneyweb reports that the King IV report on corporate governance will introduce the idea that executive pay should be “fair and responsible” in the context of overall employee pay.  

At the launch of PwC’s executive pay report on Thursday, Gerald Seegers of PwC Africa indicated:  “The simple ratio of the total pay of the CEO to the average pay of the rest of the organisation is gaining influence as a way of measuring the pay gap.”  He described this concept as “pay morality”.  PwC’s Remchannel Salary Survey estimates that this ratio ranges between 12.7 and 64.4 for most SA companies.  “The tsunami of public opinion says companies cannot ignore this,” said Martin Hopkins, PwC partner.  King IV will drive a new “stakeholder centric model”, Seegers said, taking into account value generated for all stakeholders – such as communities and employees – and not only shareholders.

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