Current share incentive schemes are largely redundant due to poor equity market performance coupled with a changes to tax regimes. Many schemes are no longer fit for purpose as they will not achieve the objectives for the organisation concerned.
This has led to persistent underperformance and deep structural weaknesses at companies with professional management teams. The result of inefficient incentive schemes is likely to result in a dramatic shift in executive remuneration strategies and structures, both here in South Africa and internationally.
Addison-Comline in association with Curle Securities has developed a new structure that complements corporate governance best practice while as the same time aligning management more effectively with existing shareholders and the growth of the company.
Raquel Scott speaks to Guy Addison from Addison Comline around Executive Remuneration in South Africa.