Naspers says it has made changes to its remuneration policy
After nearly two-thirds of ordinary shareholders voted against Naspers’ executive pay policy in 2017, CEO Bob van Dijk said on Monday management had taken investor concerns into account and made changes to the policy.
While the remuneration policy was passed at Naspers’ AGM in August 2017, this was thanks to the internet and media group’s dual-class share structure, which gives certain investors far higher voting rights than others.
Van Dijk told investors on a conference call on Monday that Naspers had changed the composition of the committees that dealt with remuneration "to make them much more international and also to have directors in those committees that are of much lower tenure".
"There will also be a number of structural changes in our compensation around clawbacks and holding requirements," he said.
These changes would be included in the group’s remuneration report, which will be part of its annual report. The report is to be published in July.
"And finally, what you’ll also see in that report is that we’ve made a really significant step up in disclosure.
"We’ve heard the feedback that we did not provide enough insight into particularly the correlation between performance and compensation outcomes, and I think we’ve made a good step up there," Van Dijk said. Naspers said on Friday revenue in the year to March rose 38% to $20.1bn, while core headline earnings were 72% higher at $2.5bn.
Van Dijk said the group had made "very significant progress" in terms of profitability across all its operating segments.
Meanwhile, Naspers and several of its peers have made submissions to index provider MSCI, which seeks to punish shares which give some investors more voting rights than others.
Naspers chief financial officer Basil Sgourdos said the group was "not too concerned" about a proposal by MSCI to reduce the weighting of companies like Naspers, which have "unequal voting shares", in its indices.