Rédaction Africa Links 24 with Neesa Moodley
Published on 2024-03-27 18:38:35
Old Mutual has taken a significant step towards narrowing the wage gap by increasing the minimum salary of its employees to R180,000 per year or R15,000 per month. This move, outlined in the company’s annual integrated report for 2023 by chairman Trevor Manuel, positions Old Mutual as one of the first insurers in the financial services sector to voluntarily disclose such information in their remuneration report.
The new minimum salary of R15,000 per month applies to employees on a permanent total guaranteed package. By comparison, Standard Bank’s minimum cost-to-company salary in 2023 was R231,050 per year or R19,254 per month. This increase in minimum pay reflects Old Mutual’s commitment to addressing income disparities within the organization.
Financial union Sasbo praised Old Mutual for its commitment to no future new appointments below the R180,000 minimum pay level. The company has increased its total spend on guaranteed remuneration by 6.8% for the bargaining unit as of April 1, 2023. Sasbo also commended Old Mutual for implementing pay raises ranging from 6.2% to 10%, particularly benefiting employees who were previously earning less than the R180,000 annual minimum salary.
Itumeleng Kgaboesele, chairperson of Old Mutual’s remuneration committee, emphasized that the salary adjustments were made to ensure that no employee fell below the minimum payline for their category of work. This change, effective April 2023, positively impacted pay ratios within the company, with 55% of the fair pay spend benefiting female employees and nearly 90% benefiting previously disadvantaged groups. The majority (94%) of the benefit supported employees in junior roles.
While Chief Executive Iain Williamson’s annual total guaranteed package is R10.3 million, when factoring in short-term incentives, long-term incentives, and qualifying dividends, his package for the 2023 financial year totals to R32.33 million. This translates to a pay ratio multiple of 57 against the minimum company salary and 180 when considering the full compensation package.
Just Share, a non-profit shareholder activism organization, praised Old Mutual for following the approach proposed in the Companies Amendment Bill by disclosing the remuneration gap between the top 5% highest paid employees and the bottom 5% lowest paid employees. The organization emphasized the importance of such disclosures in addressing labor market inequality and empowering investors to make informed decisions.
Looking ahead, Just Share suggested that future disclosures should include more detail about the roles of employees affected by the minimum salary increases and provide information on contract workers who may not fall under these disclosures. By increasing transparency and promoting understanding of pay disparities, companies like Old Mutual are taking steps towards creating a more equitable working environment.
Read the original article on Daily Maverick
