Today's Labour News

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earningsBusiness Report writes that packaging manufacturer Nampak’s remuneration policy was taken to task by shareholders at the group’s annual meeting last Thursday, with shareholders blocking windfall payments to two company’s executives.  

The company had planned a R7.2m cash retention award to chief executive André de Ruyter and a further R4.8m to chief financial officer Glenn Fullerton.  Peter Surgey, chairperson of Nampak’s remuneration committee, said Nampak faced a reality of significant retention risk of its CE and CFO and that the committee determined that it was in the best interest of Nampak to award them 'once-off' cash retention awards.  “The decision was supported by a view of both executives' performances and contributions in the prior year, in which financial incentives targets were not achieved,” Surgey said.  The “once-off” retention awards were a deviation from the group’s current policy.  They were met with resistance from shareholders with more than 25% vetoing the policy, thus blocking it as it did not meet the 75% threshold.  Shareholder activist Theo Botha said he viewed the retention awards planned for De Ruyter and Fullerton as back-dated bonuses and the policy did not allow that.  He also took issue with De Ruyter having earned R74m in four years, while no dividends had been declared in two years.

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