DA's Plan for Growth and Jobs - Democratic Alliance

(b) Specify that the annual financial statements should include an explanation of howdirectors’ remuneration relates to the company's performance.In both instances, the critical performance criteria used to determine appropriate levels offixed and variable pay needs to be widely circulated to shareholders and citizens. In addition,the Companies Act will be amended to enhance shareholder oversight and improvecorporate governance. Such amendments will:(c) Enhance the influence of shareholders over remuneration policy and ‘exit payments’ fordirectors and prescribed officers at audited companies; and(d) Apply those provisions of the King III Report on Corporate Governance that deal withshareholder activism and the independence of remuneration policy, to non-listed, auditedfirms.Effective and honest corporate leadership in South Africa is essential if the country is toachieve high rates of economic growth while reigning in the excesses that contribute towidening inequality. Reforms aimed at mitigating the scarcity of skilled professionals,containing the upward wage spiral, and boosting transparency and accountability regardingexecutive pay will go a long to furthering this goal.MEDIUM-TERM POLICY PROPOSALSPolicy outcome: Poor gain access to capital assetsFarm Equity Scheme FundEstablish a dedicated fund to support Farm Equity Schemes (FES) in which commercialfarmers sell stakes in their farms to farm workers, either on an individual basis or to farmworker trusts. The key aims of the programme are to broaden ownership in the agriculturalsector, promote land reform in areas of high-value agricultural land and spearhead anincentives-driven approach to empowerment. Schemes eligible for government fundingshould be split on a 60-40 basis, though schemes based on a 50-50 equity share would alsobe considered.Policy outcome: Broader participation in formal economyBusiness Voucher Support ProgrammeIntroduce a Business Voucher Support Programme (BVSP) in all municipalities, to beadministered by the municipality concerned, which will offer support services to small startups,or small enterprises employing fewer than five people. The BVSP consists of a voucherthan can be exchanged for a business skills, management, financial skills or relevanttechnical programme at an accredited business skills provider. Recipients must be over theage of 21, must produce proof of residence and must be able to produce a feasible businessplan.55 | P a g e