Pressure on Discovery’s pay policy after AGM vote
The company says it will consider the opposition to its remuneration policy by almost a quarter of shareholders
Investors holding nearly a quarter of the shares represented at Discovery’s annual general meeting this week voted against its remuneration policy, apparently because it is impossible to understand and therefore difficult to assess in fairness. About 75% of Discovery’s share capital was represented at the meeting, with 23.35% voting against the approval of the group’s remuneration policy. This is not insignificant, considering that Rand Merchant Investments holds a 25% stake in Discovery and presumably would not have voted against the policy, although Business Day could not confirm this. Discovery CEO Adrian Gore holds about 7% of the company. Shareholder votes on pay are not binding in SA, but the King IV Code on corporate governance and the JSE’s listings requirements oblige companies to engage with dissenting shareholders where 25% of voting rights have countered pay policies. Companies are then to report on the engagement. Transparent remuneration policies are increasingly impor...
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