Income inequality is a reality across the African continent and affects the ability of workers to maintain a decent standard of living for themselves and their families. The LRS Directors’ Fees Report is a key source of information on director remuneration in 78 South African Multinational Corporations. The aim of the report is two-fold:
- to provide information that proves how remuneration structures within companies exacerbate income inequalities. This information could assist trade union negotiators in bargaining processes. Companies will often use their financial position and decreasing revenue as motivations for why they cannot allow remuneration increases for workers. Through an analysis of director remuneration in our sample of South African Multinational Corporations, it is illustrated that such statements cannot be defended. Regardless of revenue and profit levels, directors are remunerated generously.
- to advocate for more intelligent reporting on employees to close the remuneration gap between directors and workers. Companies under-report on employees to an alarming extent. It is argued that unless the remuneration gap is visible, it cannot be crossed.
average remuneration a CEO can expect to earn per year in South Africa
companies were sampled from 14 sectors, including three state-owned enterprises
inflation-based rate at which wages grew in South Africa in the last decade
