Steinhoff investors reject changes to management pay policy
Investors also object to the size of fees paid to advisers
Steinhoff International shareholders voiced their frustration with the scandal-hit retailer by voting against proposed changes to director pay policies and rejecting financial statements for last year.
Investors logged into the company’s virtual annual meeting on Friday protested against the extent of fees paid to various advisers, some related to a deal the retailer reached with creditors to skip debt repayments after the group’s late-2017 accounting crisis.
The owner of the Pep clothing chain and Poundland in the UK was also questioned on whether it can finalise a proposed $1bn settlement to resolve more than $8bn of legal claims lodged against the company. A lawyer representing the Public Investment Corporation, Africa’s largest money manager, added that an extensive probe conducted by auditors at PwC into wrongdoing at the company should be made public.
Steinhoff shareholders have had a rough time since the retailer reported financial irregularities more than two-and-a-half years ago, with the stock still worth less than 2% of its value before the issues came to light. The company has been able to survive by selling assets such as French furniture chain Conforama and agreeing to new terms with lenders on about €9bn of debt, but the threat of punitive legal action continues to weigh.
“We are dealing with many, many interested parties who all have a peculiar set of circumstances dealing with their interaction with the company,” CEO Louis du Preez said at the AGM. “I have to emphasise that the outcome remains uncertain.”
More than 95% of investors rejected a change to management pay policy, which was to align with directives in the Dutch Civil Code. Almost 52% voted down the 2019 financial statements.
Steinhoff said earlier on Friday it was banking on cash-strapped consumers looking for cheaper clothes to drive sales at its discount chains such as Pep.
As lockdowns continue to ease, sales at its European Pepco and Poundland outlets and Pep and Ackermans stores are expected to benefit as “customers need these essential products every day, and the value focus gives the business some inherent resilience and a defensive positioning in times of economic turbulence”, the company said.
Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.
Please read our Comment Policy before commenting.