Lonmin’s shareholders have voted resoundingly against the platinum producer’s remuneration report.
At the group’s AGM on Monday, 73.8% of votes cast went against Lonmin’s remuneration report for the year ended September 2018. The vote did not focus on the company’s remuneration policy.
Lonmin said on Tuesday morning that the board acknowledged “the overwhelming vote against” the approval of the 11-page report.
“As reported in the 2018 remuneration report, in the event that the transaction with Sibanye-Stillwater does not, for any reason complete and Lonmin remains a listed company as a result, the board has committed to undertake a holistic review of pay arrangements to ensure alignment with the group’s evolving strategic priorities and we will engage with our major shareholders regarding any such proposals,” it said.
Another resolution, granting directors the authority to allot shares in the company, was only narrowly passed, with 51.5% of votes cast being in its favour.
Lonmin said heavy opposition to that resolution was “a reflection of, and in accordance with, prevailing institutional guidelines in SA, which differ from those generally applied in the UK by companies with primary listings on the London Stock Exchange.
“The board notes that the authority granted today by shareholders falls within the UK Investment Association’s share capital management guidelines.”