Ann Crotty Writer-at-large

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...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now