Why remuneration teleconferences don’t really work
Teleconferences have been singularly unhelpful as a means of engaging with shareholders over pay policies
It’s difficult to know how things got to where they are, but most people believe Shoprite started it all. There is no obligation for a company to host a teleconference when more than 25% of its shareholders vote against its remuneration policy or remuneration implementation report. But in the "monkey see, monkey do" world of executive remuneration, once Shoprite went this route, it was quickly treated as an obligatory part of the corporate governance box-ticking process. Recent pushback from shareholders and companies, however, suggests the remuneration teleconference might be a short-lived attempt to deal with the increasingly prickly issue of executive pay. Nine months after Shoprite engaged with its dissenting shareholders, almost everyone believes feedback by teleconference does not work. The problem is nobody knows what to replace it with. Until somebody figures that out, companies are likely to continue reporting back on their engagement with a few stragglers who participate i...
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