ANN CROTTY: Steinhoff directors out of touch
They ignore the substance of the reality the company faces and instead play the rules to maximum benefit
The recent fuss about the proposed payments to members of the Steinhoff supervisory board is a little surprising, given that the remuneration committee is doing only what remuneration committees have been primed to do for 18 or so years. They ignore the substance of the reality the company faces and instead play the rules to maximum benefit. It’s rather like the CEOs of the three motor companies who, back in November 2008, assumed it was appropriate to use their corporate jets to get to Washington to beg for government handouts. "Even the outrage of a nation and its press could not penetrate whatever bubble these corporations were encased in," remarked one commentator. The reality the Steinhoff committee faces is that its holding company has collapsed in a heap and no-one is sure whether it has value at all. And members of the supervisory board — the nonexecutive directors — appear to be implicated in this sorry mess. They didn’t actively conspire but they seem to have been negligen...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.