Today's Labour News

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earningsMoneyweb reports that a number of questions have been raised about a R19 million cash bonus paid to Santam chief executive Lizé Lambrechts in 2017.  

It was paid under the group’s Outperformance Plan (OPP), one of its five long-term incentive plans.  Because of this payment, Lamprechts was the second best-paid executive among listed insurance companies – and the best-paid SA-based one – with remuneration totalling R36.077 million last year (inclusive of long-term incentives that vested in the year).  Shareholder activist Theo Botha is reported to be urging investors to vote against the insurer’s remuneration policy and implementation report at Wednesday’s annual general meeting.  He says the disclosure around the OPP has been opaque since its implementation and that the benefit awarded to the CEO and FD is “excessive”.  Santam has defended the OPP grant and payment and says its remuneration committee (HRRC) “extended the OPP to Ms Lambrechts to reward superior performance over a three year measurement period from 1 January 2015 to 31 December 2017.”  Botha has also been critical of Santam’s HRRC, saying it has “not been open, honest and direct with the shareholders in this year’s report, especially in regard to the OPP benefit”.  Last year, 13.1% of shareholders voted against Santam’s remuneration policy, which was significant given that Sanlam owns 58.94% of the short-term insurer.  Also, the Public Investment Corporation (PIC) has voted against the remuneration policy for the past two years.

  • Read this extensive and informative report by Hilton Tarrant in full at Moneyweb

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