Mediclinic ‘disappointed’ at AGM voting on pay report and share-allocation plan
Private-hospital group Mediclinic International says it is “disappointed” after a large portion of shareholders voted against its remuneration report and a resolution to allow directors to allocate shares in the company.
“The views of all shareholders are important to us and we are disappointed in this outcome,” Mediclinic said after 28.6% of shareholders at its annual general meeting (AGM) voted against its pay report and 21.1% disagreed with the share-allotment plan.
“We will reflect carefully on the different feedback already received and continue to engage with shareholders on this important issue, to understand more fully the reasons for their position,” the company said.
An update would be published within six months.
Mediclinic referred to a previous plan to seek shareholder approval for a new directors’ remuneration policy at its 2020 AGM.
Meanwhile, the high proportion of votes against the resolution to allow directors to allot ordinary shares “reflects the prevailing institutional voting policies in SA”, Mediclinic said.
“As a company with a primary premium listing on the London Stock Exchange, the board considers it appropriate to seek authorities in line with the UK Investment Association’s share-capital management guidelines, which provide the company with greater flexibility to respond to market developments and business opportunities as they arise,” it said.
While many institutional investors in SA “understand the company’s position”, their mandates do not allow them to support “this level of flexibility”.
“We will continue to engage with our South African shareholders on this topic; however in view of the marked differences between UK and South African market practice in this area, it is likely that there will continue to be significant votes against this resolution.”
Meanwhile, 16% of votes opposed a resolution allowing directors to make political donations.