Who drives transparency? Examining the role of pay, power and people in remuneration governance disclosure

Summary

This research paper, "Who drives transparency? Examining the role of pay, power and people in remuneration governance disclosure," by Jachi, Scholtz, and Nel, published in 2026, investigates the structural and behavioral factors influencing remuneration governance disclosure (RGD) among companies listed on the Johannesburg Stock Exchange (JSE). The study is motivated by growing concerns about corporate transparency and accountability in emerging markets, particularly in South Africa, where robust governance and disclosure are vital for reducing information asymmetry and boosting stakeholder confidence. The authors frame their investigation around three key drivers: "pay" (incentive remuneration) as a behavioral influence, "power" (board characteristics) as a structural mechanism, and "people" (ownership structures) embodying both roles. The methodology employed in this study involves a cross-sectional analysis of firm-level data from JSE-listed companies for the 2023 financial year. Descriptive statistics and multiple regression analysis were utilized to assess the impact of incentive-based remuneration, various board characteristics, and ownership structures on the levels of RGD. The findings indicate that firms exhibiting higher levels of incentive-based executive remuneration, those with larger board sizes, and those characterized by greater institutional ownership demonstrate significantly enhanced remuneration governance disclosures. These results underscore the critical importance of incentive alignment, the architecture of corporate governance, and the effectiveness of ownership oversight in shaping a company's disclosure behaviors. The practical implications suggest that policymakers and regulatory bodies should consider strengthening RGD frameworks to foster greater investor trust and promote ethical governance practices within South Africa and other comparable jurisdictions. This study contributes to the existing literature by providing empirical evidence on how these elements collectively influence remuneration disclosure outcomes, thereby deepening the understanding of the governance mechanisms that drive transparency.