Truworths discloses more on performance targets for executive pay
The board acknowledges that it should be disclosing targets used to make long-term incentive awards and it plans to do so in 2019
Increasing demands from institutional shareholders for details of performance targets for the awarding of multimillion-rand executive remuneration packages have prompted clothing retailer Truworths to publish additional critical information just one week before its annual general meeting to avoid a shareholder backlash. JSE-listed companies are required to engage with shareholders if they do not get at least 75% support for remuneration policies and implementation reports that are put to votes at AGMs. Shoprite, MTN, Sanlam, PSG, ABSA and Remgro are among the big names forced in the past year to engage with shareholders opposing their remuneration policies. Votes on remuneration policies and implementation reports are both nonbinding advisory votes and hold no legal consequences, but one corporate governance analyst at a major investment institution said companies seemed determined to avoid the embarrassment that comes with votes below 75%.
“One sure way of striking out is not...