South African executive pay structures 'require reform'

South African executive pay structures are in major need of reform due to rising pay inequality across the nation, according to a business organisation.

The Institute of Directors in Southern Africa (IoDSA) has published a report suggesting that the nation is not exempt from global trends that have led to business leaders receiving inflated and untenable salaries.

According to the IoDSA, these issues of pay inequality are even more exaggerated in South Africa due to its segregationist past, leading to the nation having one of the world's largest pay differentials between chief executives and average employees.

Ansie Ramalho, chief executive of the organisation, noted that recent business scandals in the area have underlined the fact that business processes in South Africa are not sufficiently transparent.

"Some companies and individual directors are making the right moves, but more needs to be done - and quickly," she added.

This comes after the organisation recently called for South African firms to pay greater attention to their responsibilities under the new Code on Responsible Investing.