COMPANY COMMENT
Shareholders seem quite accommodating of shrinking Nampak
But as for Curro’s high earnings multiple ... it really should get an F
Shareholders of the rapidly shrinking packaging company Nampak appear to be very happy with the management. They voted overwhelmingly in support of all but one resolution at this week’s AGM. Even the non-binding advisory votes on remuneration received a relatively high level of backing with just 16% voting against the policy and 14% against its implementation. This seems exceptionally accommodating given that the company’s market cap is about one-fifth of what it was a few years ago. The executive team is apparently being rewarded in the hope it will save the shareholders from continuing pain. And then there’s the non-executive chair who gets an annual fee of R1.9m, which looks extremely generous for a company with a market cap of only R9bn. It seems shareholders were persuaded the chair would be playing something of a hands-on role as the struggling company attempts to implement a more focused strategy. The focus will likely see more disposals of under-performing operations such...
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