Monday, 21 May 2012 07:53

Shareholder activist Theo Botha responds to a letter from Absa on 14 May under the headline “Most shareholders support pay policy”. He agrees that the wording of the bank’s remuneration policy follows the literal requirements of local and international regulations. But the substance is that shareholders should be able to hold the remuneration committee to account, based on the information furnished, which is not possible with Absa because no key performance indicators (KPIs) or KPI weightings are provided for the executive directors or executive committee members.

• Read Botha’s letter at Business Report

Monday, 21 May 2012 07:15

Business leader Bobby Godsell has proposed that SA establish an independent commission into executive pay, which he says is excessive and lacks transparency. He says a similar body is needed such as the independent UK High Pay Commission, the recent recommendations of which include a proposal that executives be paid basic salaries with only one performance-related element.

• This report is on page 2 of today’s Business Day print edition (no internet posting)

• Also reported at Business Report