Executives paid too much – Gordhan

"Extreme earning disparities cause offence not just when associated with profiteering or financial malfeasance, but also when the reward for honest work seems disproportionate or weakly aligned with incentives," the treasury chief said in his Budget vote speech to parliament.

"There is a national discourse needed here, aimed at moderating high-earning remuneration levels within our large corporations, including state-owned enterprises - for the social dimensions of earnings trends can surely not be ignored in the economic calculus of risk and rewards.

"We are creating a dangerous culture in South Africa."

The remark comes after concern over high corporate pay grew further still in recent weeks over a mooted golden handshake of R7.5m for outgoing Standard Bank chairperson Derek Cooper.

Gordhan again warned against wasteful public spending, saying much of treasury's job lay in ensuring "integrity, accountability and value for money in the use of public funds".

He said the preparation of the 2011 Budget will focus strongly on directing public resources to priority areas.

"Cost saving will therefore continue to be an integral part of departmental budgeting and expenditure analysis, as part of a broader review of expenditure and service delivery priorities."

He stressed that government spending had increased considerably in recent years to reach R907bn or 33.6% of gross domestic product in the current year.

Gordhan thanked parliament's watchdog standing committee for public accounts for its keen oversight of departments' finances, and acknowledged trade unions' calls for an end to corruption.

"We also thank our trade unions and other organisations for their support in fighting corruption. We must intensify our efforts to root out this culture of 'easy money'.