Executive pay and inequality: Should CEOs get massive remunerations?
It is no secret that there is extreme inequality in our country, and the announcement that Sibanye-Stillwater CEO Neal Froneman would be receiving about R300 million in remunerations draws attention to the need for conversation around this.
John Perlman speaks to Tracey Davies, director at Just Share, about how executive pay is determined and whether this type of remuneration for CEOs is justified.
The discussion around CEOs earning millions of rands is something that many people are divided on, with some believing that they deserve a reward for running a successful company, and others arguing that it creates greater inequality between workers and their leaders.
Davies says regardless of whether or not someone believes these rewards are deserved, you cannot deny that there is extreme and worsening inequality in our country.
Whether or not you agree that any particular CEO does or doesn’t deserve a reward like this, the fact is that we all know that in South Africa inequality is severe and it is getting worse. A major contributor to that inequality is the fact that over the past two decades, the earning growth among low and medium earners has essentially been stagnant.Tracey Davies, Director at Just Share
She also argued that if we continue to justify these massive earnings for CEOs, who are berating their employees for asking for wage increases above inflation, we will not make any progress towards equality.
Listen to the audio for more:
This article first appeared on 702 : Executive pay and inequality: Should CEOs get massive remunerations?
Source : https://www.123rf.com/photo_56470691_rich-man-with-clock-and-money-background.html?vti=obej62doqw9cnhqaje-1-5
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