Factors driving changes to remuneration policies in South Africa
Date
2014-01-14
Authors
Satram, Lester Anthony
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Abstract
The study was undertaken to determine what the factors are that drive changes to remuneration policy in South Africa, and to determine the extent of changes to the components of remuneration policies since 2008. A similar study was undertaken by Bussin in 2003 and the results between the two studies were compared.
The data was collected via an anonymous e-mail questionnaire and analysed using quantitative techniques.
The key findings were that the retention of key staff and an organisation‘s financial results were primary drivers of changes to remuneration policy; these findings concurred with the 2003 study.
However, factors linked to corporate governance, such as Remuneration Committees, Shareholder expectations, Governance/King III have all increased in perceived importance as factors driving changes to remuneration policy.
The components of remuneration policies linked to Merit Pay and Retention Strategies appear to have been subject to the most changes since 2003. This could also reflect shareholder expectations that employee pay should be closely aligned to performance and that key critical employees should be retained for business continuity.
Description
MBA thesis
Keywords
Remuneration policies