Companies Amendment Bill aims to improve employee remuneration gap disclosure

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Nicola Malan from Malan Scholes Attorneys throws light on concerns regarding possible unintended consequences.

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NICOLA MALAN: Hi, good morning Simon. Yes, there are a few amendments that have been introduced. I think the two amendments that are the most controversial the disclosure of additional information, specifically the average remuneration of all employees’ remuneration gaps, reflecting the ratio between the top 5% highest-paid employees and the bottom 5% lowest-paid employees. That doesn’t currently have to be disclosed, and that’s now a new requirement.

SIMON BROWN: I take your point on that. I mean, non-approval could absolutely stymie the process, and I appreciate shareholders saying that they want more control, perhaps. But practically this could get very, very messy. SIMON BROWN: To me this very much sounds like a bill which has good intentions, but perhaps hasn’t actually really thought through the unintended consequences of this. Obviously there’s a process as bills go through parliament and the like. I’m not sure what the correct is, but objections being raised, perhaps.

SIMON BROWN: And timelines for that? In my understanding of parliament there’s process, but sometimes those timelines can stretch out, and there might not be certainty on that.

 

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