DIRECTORS running Zimbabwe’s industries are earning far less than their regional peers, amid a storm of economic challenges said to be among the biggest hurdles threatening corporate governance standards.
So wide is the difference that independent research seen by the Zimbabwe Independent suggested corporate directors were earning up to 60% less — in real US dollar terms — than their counterparts in countries such as South Africa, Namibia and Zambia.
The disparity — driven by relentless currency depreciation, inflationary shocks, and boardroom opacity — is raising alarms among governance watchdogs who fear under-compensation may expose companies to deeper strategic and ethical failures.
“There is, indeed, a lack of transparency in this area,” Emmah Mungoni, vice-chairperson at the Institute of Directors Zimbabwe (IoDZ), told the Independent this week.
“While we do not have a fixed national benchmark, we are working with regional partners to compile comparative data.”
Mungoni said while boardroom compensation data remained closely guarded, Zimbabwean directors earn “less than their regional peers, especially when adjusted for currency volatility and inflation”.
This severe pay gap, insiders say, is one of the reasons local firms continued to lose executive talent to more stable economies.
Battered by the headwinds, many companies have opted for corporate rescue, downsizing, or outright shutdown.
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Mungoni warned that this under-compensation was already bleeding into corporate governance and accountability.
“When remuneration is too low, it may affect accountability and independence,” she said.
“Directors must be fairly compensated for the roles they play. In many cases, particularly non-executive directors who carry significant liability, they are often under-compensated for their strategic contribution.”
Inadequate pay compromises board independence, discourages strong oversight, and leaves critical decisions in the hands of underpaid, overstretched directors with little incentive to challenge management failures.
While Zimbabwe reels from over a decade of economic turmoil — marked by high inflation, policy flip-flops, and dwindling investor confidence — directors have remained caught in the crosshairs of an economy that punishes commitment and rewards flight.
The IoDZ says it is ramping up efforts to change this.
“We advocate for fair, performance-linked remuneration that reflects the responsibilities and risks of directorship,” Mungoni said.
“We are lobbying for regulatory reform that promotes transparency and standardisation in director remuneration. At the same time, we guide boards on best practices, including use of benchmarking tools, annual remuneration reviews, and independent remuneration committees.”
Despite the upheaval, she said the IoDZ remained “encouraged by the resilience and commitment of many directors who continued to serve with integrity and vision”, even as the country’s governance environment buckled under mounting pressure.
“Zimbabwean directors operate in a highly complex and often unpredictable environment,” she said, citing “policy uncertainty, currency and inflationary risks, weak stakeholder trust, limited access to capital, and cybersecurity threats”, among a host of leadership landmines.
“As the Institute of Directors, we will continue to uphold the highest standards and support our members to meet the demands of an evolving business landscape,” Mungoni added.
But the gulf between directors and their workers is also being tested by another national flashpoint — rising pressure from civil servants who this week launched a flash protest at the New Government Complex in Harare, before marching to the Ministry of Finance to demand urgent wage reviews.
The protest, organised under the Zimbabwe Confederation of Public Sector Trade Unions (ZCPSTU), was the latest sign of discontent.
Civil servants have gone six months without a salary review.
ZiG-indexed inflation soared to 92,5% in June, up from 92,1% in May — the region’s highest.
Workers say they are now drowning in poverty.
“We wanted to deliver our plea to the government that the mid-term budget should include the cost-of-living adjustment,” said ZCPSTU secretary-general David Dzatsunga, after civil servants met deputy Finance minister Kudakwashe Mnangagwa.
“We cannot say we have succeeded, but we are hopeful since we have received audience.
“We don’t want a situation like that of last year, where there was no provision for a salary increment (in the mid-term budget review).”
They also raised concern over the government’s delayed job evaluation exercise, claiming US$32 million earmarked for civil service remuneration remains idle as salaries stagnate. The brewing labour revolt underscores a broader national crisis: an economy in which both boardroom executives and their rank-and-file workers are losing the battle for fair compensation.
If nothing changes, Zimbabwe could soon be faced with a dangerous governance vacuum — top talent lost to the region, and leaders too underpaid to lead with independence.
