NewsExpress advert FCMB 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: 576

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+



REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...


You may also like...
Gov. Chime’s powerful sister, ex-Chief of Staff Ifeoma...

Grief, anger in Ghana after deadly gas station...

Google, Stanbic IBTC partner to train Nigerian youths,...

Gambian army seizes electoral office as Buhari, others...

AY links low quality movie production in Nigeria...

2019: APC laughs off Sheriff’s boast to restore...

CBN distances self from fatal road accident

Breaking News: Bomb blast rocks Yola

Boko Haram threat: Security beefed up in Abuja,...

Nigeria projected to earn $507m from hotels by...

Prominent Abia traditional ruler slumps, dies

12 Boko Haram hideouts uncovered in Cameroon •13...


Latest News Buhari leads heavyweights to Kano for Dangote’s daughter’s wedding Herdsmen occupy 3 Delta communities NJC appoints 60 judges for 25 states + Names of the judges Air hostess dies after falling from plane EXCLUSIVE: Buhari, National Assembly leaders strike deal on 2018 Budget 100 arrested over Ojota Lagos violence FG sets up National Food Security Council, appoints members Petroleum Industry Bill ready for presidential assent by end-March — Committee Chairman Oil prices jump, Brent hits approximately $70 Lagos Land Use Charge review a plus to the people, says NIM Russia, U.S. to hold joint test flight to moon in 2019 Violence erupts in Madrid over African migrant’s death


Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (331,810 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (324,370 views) Shameless Genevieve Nnaji exposes breasts in public (260,041 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (213,847 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (197,650 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (191,969 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (167,273 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (150,059 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (142,846 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (132,731 views) Lagos plane crash: Journalist releases victims’ names (132,261 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (125,562 views)


Categories Advertorials (3) African Press Organisation (81) Art & Literature (34) Business & Economy (2,968) Business Verdict (36) Columnists (813) Complaints & Requests (94) Enterprise & Opportunities (206) Entertainment (455) Features (552) Global Business Monitor (237) International (1,851) Interview (145) Live Commentary (28) Love Matters (114) News (33,658) Opinion (894) Pidgin (10) Politics (4,615) Religion (700) Sports (1,456) Stock Watch (28) AMA & Al Jazeera Global Update





Football Highlight -- BARCELONA - CHELSEA 3:0


APO Group Partner




REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera