Delisting ‘no’ at Coronation
Shareholders make board jump through hoops but going private would be too costly, say bosses
Delisting Coronation Fund Managers would save the board from jumping through a lot of hoops at the annual general meeting but it would require a lot of money, the group’s chairman said on Tuesday. At the end of a sometimes tense two-hour meeting, shareholder Johannes van der Horst asked Coronation Fund Managers chairman Shams Pather: "Does it really make sense to be listed and jump through all these hoops?" Pather indicated that a media presence limited the scope for discussion. "It’s a strategic issue … it’s a good point … it would need a lot of money." During the preceding two hours the board had been grilled by a number of shareholders who were concerned primarily about the poor disclosure of the details of the fund manager’s controversial remuneration policy. In terms of a contractual arrangement between the company and its 290 employees, 30% of Coronation’s annual pretax profit is allocated to a bonus pool. But the fund manager provides no information of the basis on which bonu...
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