REMUNERATION
MMI's liberal use of executive rewards raises questions
Continued liberal use of retention payments and multimillion-rand golden handshakes by MMI’s remuneration committee should ensure a large portion of the insurance group’s shareholders will again vote against the remuneration policy at the annual general meeting. The rewards enjoyed by the executives looked particularly inappropriate in the context of a share price that was trading at around its 2013 level, one fund manager said. A hefty 52% of outside shareholders voted against the remuneration policy in 2016. Shareholders might take comfort from the fact that CEO Nicolaas Kruger received no short-term incentive for 2017 when underwriting losses and weak investment returns knocked diluted headline earnings. However, subsequent to the June year-end, Kruger and his fellow executive directors were awarded one-year retention payments.Essentially the payments will make up for the nonawarding of short-term incentives. There is no indication of performance requirements attached to the paym...
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