WATCH: CEO incentives — it’s not how much you pay, but how you pay

The question of getting alignment between shareholders and managers of businesses on the JSE and how to use appropriate incentives to achieve this was thrown into stark relief recently after chicken player RCL’s AGM on the one hand and Astral’s results on the other.

There are some pertinent comparisons that illustrate which companies are getting EVA right and which aren’t. One of the most topical, given RCL Foods recent announcement of a strategic review, is between Astral and RCL.

Michael Avery speaks to Chris Logan of Opportune Investments and David Holland of Fractal Value Advisors, an adjunct professor at the University of Cape Town Business School.