Tsogo Sun set to pay millions for directors’ losses
Tsogo Sun, the hotel and gaming group that has lost about a third of its value in the past two years, is set to bail out executives who face losses on the R200m interest-free loan they were granted in 2014 to purchase shares. The arrangement will be implemented if controlling shareholder Hosken Consolidated Investments (HCI), one of the most high-profile union investment companies, gets minority shareholder backing to spin off Tsogo Sun’s properties into the separately listed entity Hospitality Property Fund. This is the latest evidence of pressure on executive remuneration caused by sustained weakness in the share market. Missed target Richard Brasher, CEO of food retailer Pick n Pay, has just lost out on a potential multimillion-rand share award because the company’s share price did not reach the targeted level. Gerald Seegers, head of human resources services at PwC, said there is no doubt equity market conditions will put pressure on executive earnings. "Long-term incentives wil...
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