Question $3$

Study the scenario below and answer the questions that follow:

A number of top South African companies have faced increased scrutiny for the huge wage gap

between their executives and lower$-$income workers. Recently, trade union Solidarity has called out

Telkom which paid a total of R$104$ million to its top executives in $2019,$ but still plans to cut more

than $3,000$ jobs in $2020.$ New data from Deloitte shows that this pressure on executive pay is likely to

continue in the coming year, as will the requirement to justify the quantum of pay, due to the high

visibility of the pay gap. Deloitte adds that over the last $20$ or $50$ years, executive pay in South Africa

has evolved to a point where it is reasonably in balance with executive pay internationally. Executive

pay has become a controversial topic after steep increases in previous years.

$3\mathrm{.}1$Discuss the recommendations and submissions made in the King IV code to

address this ongoing problem of excessive executive remuneration

packages. $(10$ Marks$)$

other co$-$accused, with the money being disguised as "commissions". Savoi is also out on R$100000$

bail.

Block, who is still an MEC, was not available for comment yesterday.

$3\mathrm{.}2$Highlight quality$-$control mechanisms put into place to deal with exceptionally

high executive pay structures. Your answer could focus on selection,

recruitment, appointment, training, and performance evaluation. $(20$ Mark