South Africa: PPC's new black economic empowerment (BEE) deal has shifted the beneficiary base from broad-based trusts to the company's employees themselves, using the 'proximity principle.' The new transaction will increase the company's staff ownership to 12%.
This follows a move in 2013 to close the income inequality gap through an executive pay freeze that bumped up the salaries of lower-paid workers. CEO Ketso Gordhan said that the company has spent time on the ground with its employees, who have shown an appreciation for being listened to. Whether PPC will follow this up with further executive pay cuts and freezes remains to be seen, though Gordhan has said that the company intends to reduce the wage differential further.
