The pay gap between CEOs and employees is more noticeable in South Africa because of the income inequality that exists in the country, this is according to Wealthwoke.com founder Elian Wiener.
Speaking to Refilwe Moloto, Wiener says in the 1970s, CEOs around the world used to get 10 times more pay than the average worker.
He says due to the share incentive schemes the pay gaps have grown much bigger.
A couple of studies have been done and they say the link between CEO pay is not necessarily based on performance. More often it is based on the relationship the CEO has with the board or the remuneration committee.— Elian Wiener, Founder - Wealthwoke.com
CEO share option quantums granted are completely out of whack.— Elian Wiener, Founder - Wealthwoke.com
Wiener suggests that employees need to more vocal about the pay gaps in their companies.
We need to hold the remuneration committee and boards much more accountable. We need to be more vocal.— Elian Wiener, Founder - Wealthwoke.com
We must put some employees on the remuneration committees of these companies.— Elian Wiener, Founder - Wealthwoke.com
Listen to the full interview below...
This article first appeared on CapeTalk : 'CEO pay is not linked to performance, share option quantaums are out of whack'