Oceana Group chair Mustaq Brey says the board has acted in good faith and in accordance with the highest standards of corporate governance
02 June 2022 - 05:00
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We note with concern recent coverage of Oceana in the FM, which we believe warrants clarification on key points. The assertions by a single shareholder, Des Mayers, have negatively affected our stakeholders.
Oceana directors’ remuneration is regularly benchmarked against the market using independent research. Nonexecutive director remuneration is approved annually by shareholders, and executive remuneration is in line with our published policy, subject to an annual advisory vote by shareholders that passed with an 81.27% vote at the 2022 AGM.
The CEO and CFO in question were paid R157.1m during the eight-year period from 2014 to 2021 — R54.9m lower than the R212m stated in the article. This amount included guaranteed pay of R64.2m, short-term incentives of R36.2m and R56.7m of exercised share options.
Contrary to the assertion made in the FM, shareholders received dividends in all years from 2014 to 2021. The company adopted a similar dividend cover in each of these years except for 2017, when the board considered it prudent to conserve cash, and a final dividend was not declared.
The media was invited to the AGM and requested to submit questions after the meeting. As always, shareholders were given the opportunity to ask questions at the meeting. The only questions received were from Mayers, and all his questions were answered at the meeting. After the meeting we responded to the observations he raised in relation to the directors’ remuneration.
As regards earlier reporting,far from receiving a “golden handshake”, former CEO Imraan Soomra resigned voluntarily — it was never alleged he was involved in the destruction of evidence during the ENS investigation.
Regarding the audit relationship, the Oceana board acknowledged the strained relationship with its external auditor following the group’s AGM. Given the votes exercised against the resolution reappointing the auditor, the audit committee will now consult with shareholders regarding the external auditor.
In all these matters, the board has acted in good faith and in accordance with the highest standards of corporate governance, and with the interests of shareholders and stakeholders at the centre of its decision-making.
Mustaq Brey Oceana Group chair
The FM welcomes concise letters from readers. They can be sent tofmmail@fm.co.za
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Overpaid bosses: Oceana responds
Oceana Group chair Mustaq Brey says the board has acted in good faith and in accordance with the highest standards of corporate governance
We note with concern recent coverage of Oceana in the FM, which we believe warrants clarification on key points. The assertions by a single shareholder, Des Mayers, have negatively affected our stakeholders.
Oceana directors’ remuneration is regularly benchmarked against the market using independent research. Nonexecutive director remuneration is approved annually by shareholders, and executive remuneration is in line with our published policy, subject to an annual advisory vote by shareholders that passed with an 81.27% vote at the 2022 AGM.
The CEO and CFO in question were paid R157.1m during the eight-year period from 2014 to 2021 — R54.9m lower than the R212m stated in the article. This amount included guaranteed pay of R64.2m, short-term incentives of R36.2m and R56.7m of exercised share options.
Contrary to the assertion made in the FM, shareholders received dividends in all years from 2014 to 2021. The company adopted a similar dividend cover in each of these years except for 2017, when the board considered it prudent to conserve cash, and a final dividend was not declared.
The media was invited to the AGM and requested to submit questions after the meeting. As always, shareholders were given the opportunity to ask questions at the meeting. The only questions received were from Mayers, and all his questions were answered at the meeting. After the meeting we responded to the observations he raised in relation to the directors’ remuneration.
As regards earlier reporting, far from receiving a “golden handshake”, former CEO Imraan Soomra resigned voluntarily — it was never alleged he was involved in the destruction of evidence during the ENS investigation.
Regarding the audit relationship, the Oceana board acknowledged the strained relationship with its external auditor following the group’s AGM. Given the votes exercised against the resolution reappointing the auditor, the audit committee will now consult with shareholders regarding the external auditor.
In all these matters, the board has acted in good faith and in accordance with the highest standards of corporate governance, and with the interests of shareholders and stakeholders at the centre of its decision-making.
Mustaq Brey
Oceana Group chair
The FM welcomes concise letters from readers. They can be sent to fmmail@fm.co.za
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