President Cyril Ramaphosa has signed amendments to the Companies Act into law
President Cyril Ramaphosa has signed sweeping amendments to the Companies Act into law, tightening governance rules around executive pay and forcing greater transparency at public and state-owned companies.
The changes, signed into law in 2024, introduce binding shareholder oversight of remuneration policies.
Under the new framework, public and state-owned companies will be required to secure shareholder approval for their executive remuneration policies through a binding vote at annual general meetings. The policies must also be reviewed at least once every three years, or sooner if materially revised.
According to law firm Bowmans, companies are also required to publish detailed annual remuneration reports, including the pay of individual directors and prescribed officers, as well as information on average and median employee pay and the gap between the highest and lowest earners.
