A big part of instilling investor confidence means companies being transparent and allowing stakeholders access to management when information is required. In dealings last week, AVI — the owner of more than 50 brands, mainly in the food sector — awarded shares to senior executives as part of the company’s limited out-performance scheme (LOP). Under the scheme, the company awarded Keith Phillips, the MD of its international division, 44,244 shares at a price of R57.86. Total consideration was R2.56m. Phillips subsequently sold all the stock at R92.72/share, for a total value of R4m. Sarah-Anne Orphanides, MD of Entyce Beverages, accepted 22,746 shares at R57.86, then sold them at R92.80/share.
When asked for clarity on the LOP scheme, AVI pointed to its annual report for an answer. The report shows AVI executives belong to three share-incentive schemes and also receive short-term cash bonuses. According to the 2016 annual report, AVI will pay executives 50%-60% of their remune...
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