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Definition

This is the difference between the average earnings between two different groups of people, for example, those people in a company who have lower-skill jobs and the executives in that company or between the remuneration for men and women. In South Africa the wage gap between the CEO of the company and the lowest paid employee became a major factor in May 2021 when the minister of Trade, Industry and Competition, Ebrahim Patel, spoke of "the gross injustice of excessive pay for executives" and said he would change the Companies Act to address this. Obviously, South African companies compete with overseas companies for executive talent. If the salaries of top executives are curtailed they will seek employment elsewhere and our companies will have to manage with lower quality executives.

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