Fidelity bank banner Bayelsa State banner
Shoprite shareholders reject pay policy

By Ann Crotty on 03/11/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 803


A hefty 65% of Shoprite’s “outside shareholders” voted against the group’s remuneration policy at the 2017 annual general meeting, but not all of them want to participate in next week’s unprecedented teleconference called to discuss their concerns.

Mehluli Ncube, representing the Sentinel pension fund, described the invitation to participate in the teleconference as a little hostile. Ncube, who attended the annual general meeting on Monday to express his concerns about the remuneration policy, said the teleconference was in line with the new JSE requirements, which oblige companies to engage with shareholders if more than 25% of them votes against the remuneration policy.

The obligation is in line with the King IV recommendation, which also requires Shoprite to disclose with whom it engaged, the manner and form of engagement and the reasons for the dissenting votes. Shoprite should also disclose the steps taken to address “legitimate and reasonable objections”.

At Monday’s meeting, almost 30% of the shareholders voted against the remuneration policy — this was in line with the voting pattern of the previous three years. However, if the ordinary and deferred shares held by controlling shareholder chairman Christo Wiese are excluded, the level of opposition shoots up to 65%.

In financial 2016, 66% of “outside shareholders” voted against the remuneration policy. Ncube said they had consistently voted against the remuneration policy in the past because they felt the package awarded to the previous CEO, Whitey Basson, was out of line.

Ncube said that the teleconference was a new development, but the company had engaged with them after past annual general meetings. “Previously, the investor relations people engaged with us on an individual basis and that was quite constructive. I’m not sure how well the teleconference will work,” he said.

One analyst, who did not want to be named, said that the vote against the remuneration policy had increased in 2017, although the policy had actually improved “if you compare the new CEOs incentives with Whitey Basson’s package”.

“Outside shareholders” may have been concerned by the R50m paid to Basson in 2017, although he had played an executive role for only six months of the year. A footnote in the annual report says that Basson, who gave notice of his retirement on September 30 2016, had an agreed notice period of 12 months. “He therefore receives guaranteed pay until 30 September 2017”.

However a Sens announcement released on October 31 2016 said that Basson was retiring at the end of December 2016 and would remain as nonexecutive vice-chairman.

On Monday, Shoprite announced that Basson, who has driven the group’s growth for 45 years, had retired from the board on October 25.

Text courtesy of Business Day SA

 

Source News Express

Posted 03/11/2017 12:18:53 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Last minute deal saves National Conference •How northern...

5th Lagos Public Relations Stakeholders Conference beams searchlight...

Breaking News: Court order clears the way for...

7.9m Nigerians became unemployed in 21 months –...

Pipeline blast cuts Agip’s crude export by 16,000...

New Year: Customers happy with ATM services

Sudan accused of using chemical weapons in Darfur...

Speaker identifies cause of Niger Delta militancy, demands...

Army Chief commends Theatre Commander, Lafiya Dole troops...

Military warns new militant groups

Rains likely today around Abuja, Lafia, Jos, Southern...

Setback for Dankwambo’s presidential ambition as brother dumps...

 

Latest News Next President: The right man for the job, By Chima Nwafo Hate Speech Bill: Issues and worries, By Jerome-Mario Utomi 18-year-old boy rapes 7 Ekiti Varsity students Communications Minister, Adebayo Shittu, in certificate scandal Lawyer ambushes Python Dance 3 in court •Sues Buhari, Buratai, Malami, others Buhari, governors may clash with Tinubu over Ambode Oshiomhole, APC bow to governors, make U-turn on indirect primaries Delta establishes 6 IDP camps •To forward 2019 budget proposals to DTHA soon Southern, Northern leaders express fears over 2019 polls Plateau women protest half naked over military action Businessman sentenced 140 years for forging foreign cheques Stella Oduah dumps APGA, announces return to PDP

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (395,145 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (376,088 views) Shameless Genevieve Nnaji exposes breasts in public (307,687 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (250,148 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (231,667 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,342 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (199,565 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (181,199 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (165,279 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (163,146 views) Lagos plane crash: Journalist releases victims’ names (157,837 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (146,653 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (62) Business & Economy (3,613) Business Verdict (52) Columnists (932) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (547) Features (652) Global Business Monitor (301) International (2,415) Interview (164) Live Commentary (28) Love Matters (143) News (39,022) Opinion (1,109) Pidgin (11) Politics (6,664) Religion (869) Sports (1,697) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

I am Imo State's New Governor -- Okorocha's son-in-law Uche Nwosu...

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement