News: Shoprite shareholder opposes CEO's R50.1 million fixed remuneration
As reported on Moneyweb, Shoprite's largest shareholder, namely the Public Investment Corp, voted against its remuneration policy.
This was in light of the fact that the South African food retailer's Chief Executive Officer (CEO), Whitey Basson, had a fixed payment of R50.1 million.
The shareholder is against this policy on the basis that the payment is NOT performance-based.
At an annual general meeting, held in Cape Town, on Monday 19th
October, about 29% of all shareholder votes were opposed to the remuneration policy for the executive.
The Public Investment Corp
was quoted, via email, in saying their 'view is that the structure of the CEO's remuneration is skewed toward fixed remuneration and that performance conditions for the executive-share plan lack sufficient detail.'
Shoprite Chairman Christo Wiese
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said, at the annual meeting: 'The policy is to essentially have a competitive remuneration policy, in most instances linked to performance,'
He went on further to say: 'It's very difficult for boards of directors or remuneration committees to strike the right balance, the right balance in terms of being competitive, that you don't lose scarce talent.'
*In light of this news, the issue of remuneration
, including bonuses,
may create some questions – with regard to your very own remuneration policy for employees and managers.
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Note: 5 of 1 vote