Gordhan's timely warning to the captains of industry
The Times Editorial: Pravin Gordhan, the minister of finance, yesterday joined the call for corporate South Africa to show a little modesty when it comes to executive salaries.
Gordhan asked that business rethink its remuneration levels given South Africa's glaring inequalities.
"There is not enough coming from business that indicates sufficient recognition on your side that huge bonuses to managers are going to have a damaging effect," Gordhan told Business Unity SA's annual meeting.
H is words evoke memories of the financial implosion of 2008 and the greed of the bankers of Wall Street and of other financial centres that it exposed.
Here in South Africa, the masters and mistresses of corporate South Africa are not doing too badly either.
A glance at the Sunday Times' Rich List reveals the exceptionally high packages that South Africa's top earners take home, making the calls for prudence by Gordhan and others completely reasonable.
In 2010, Shoprite CEO Whitey Basson took home the highest earnings recorded in a single year - R627.53-million in salary, perks and share options. Patrice Motsepe was the country's richest man last year, with a fortune estimated at R23.36-billion.
To ask these business stewards to take home a few less millions is, however, likely to be greeted with a stock response - that they are being rewarded for their vast skill in returning value to their shareholders and contributing directly to the country's economy.
Following Standard Bank CEO Jacko Maree's example might be a good place to start, though. In September, he pledged 10% of his taxable income to help educate black students.
If the captains publicly pledged their commitment in a similar fashion, the startlingly high salaries and perks might be a bit more palatable to many. And they might just find it much easier to be driven past a squatter camp or two.

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