Front-line remuneration – focusing on what is sold

Front-line remuneration – focusing on what is sold is not enough.  How the employee does the job is at least as important as what the employee does.  How we incentivise and reward customer-facing staff is pivotal to company culture and customer outcomes.   In many cases, variable remuneration arrangements incentivised behaviour that was adverse to customer interests. The read more..

By |2020-11-03T14:42:14+02:00Oct 17th, 2020|Front-line remuneration|0 Comments

Executive Remuneration is lacking in symmetry.

Executives continue to get very well paid when companies do well, but also get very well paid when results are poor. Executive remuneration is lacking in symmetry with the performance of the enterprise.  This gap between payment & performance and the short-term nature of these rewards incentivises an obsession with the short term, I think. read more..

By |2020-11-03T14:49:10+02:00Oct 10th, 2020|Executive remuneration|0 Comments

Seven pitfalls awaiting non-executive directors

Corporate governance in South Africa differentiates between non-executive directors (“NED”) and independent directors (“ID”) of companies. An ID is defined as a person who has no interest, position, association or relationship with the company or its executives. NEDs by definition are neither full-time executives nor IDs. We will refer to both of these as NEDs read more..

By |2020-11-06T05:58:57+02:00Sep 13th, 2020|Boards of directors|0 Comments

Internal pressure – a threat to internal audit’s objectivity.

Internal pressure is a pervasive threat to the internal audit's objectivity.   Nothwithstanding this, the internal audit function of larger enterprises is critical for assessing the maintenance of good governance. It provides the audit committee and the board with a clear, unfettered view of internal compliance with company policies. Few people are aware that amongst internal read more..

By |2020-09-09T20:23:42+02:00Sep 9th, 2020|Internal audit|0 Comments

Unalterable provisions – MoI vs the Companies Act.

It is important to note that unalterable provisions pitch the MoI vs the Companies Act. The latter will always prevail over provisions of the company’s MOI. What are the alterable provisions? Cliffe Dekker Hofmeyr ("CDH") noted that "proxy appointments are a critical tool to ensuring that meetings proceed and decisions are made, where shareholders/members cannot read more..

Why does a board opt for a share buy-back of the company’s shares?

Ever wondered why a board opts to buy back the company’s shares? A share buy-back is almost always the subject of a shareholders’ resolution at each AGM of an issuer. Common sense dictates that boards resolve to pursue a share buy-back arrangement under the following circumstances: A discount exists between the current market price and read more..

By |2020-07-26T09:00:56+02:00Jul 26th, 2020|Share buy-backs|0 Comments

Go to Top