This is where King V’s emphasis on ethical and effective leadership remains relevant. Remuneration is not simply a mechanism for paying people. It is one of the ways leadership intent becomes institutional reality, argues the writer.
Nqobani Mzizi
Few boardroom decisions reveal institutional values as clearly as remuneration. An organisation may speak persuasively about purpose, fairness, sustainability, ethics and stakeholder trust, but how it rewards leadership often tells a deeper story. Pay reveals what is valued, what is tolerated and what the board is willing to defend.
This is why remuneration should never be treated as a narrow human resources matter. It sits at the intersection of power, performance, fairness and accountability. South Africa’s governance environment has now shifted in this regard.
The remaining remuneration-related provisions of the Companies Amendment Act 16 of 2024 came into effect on 22 May 2026, introducing a more demanding framework for remuneration disclosure and approval. Public and state-owned companies must now prepare remuneration policies and remuneration reports for shareholder approval, with greater visibility of director and prescribed officer remuneration, as well as pay-gap information.
