The passive-investment style of Coronation Fund Managers and its remuneration policy came under attack at the group’s annual general meeting. Activist shareholders Chris Logan urged the fund manager to engage actively with companies in which it is invested and Theo Botha called for more disclosure on how its executives are rewarded. Despite persistent questioning, Botha failed to get details about the basis on which long-term bonuses were allocated to individuals. He was told it was a pool of funds allocated to individuals on the basis of their contribution to the company. Botha queried whether there was any provision for clawing back bonuses and said the long-term scheme could hardly be described as long term, given it was only three years. "It’s not long term. Once these bonuses are awarded they vest in year one, two and three," he said after the meeting. Jock McKenzie, chairman of the remuneration committee, said at the meeting that other shareholders had raised concern about the...

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