Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

earningsBusinessLive reports that increasing demands from institutional shareholders for details of performance targets for the awarding of multimillion-rand executive pay packages have prompted Truworths to publish additional critical information just one week before its AGM to avoid a shareholder backlash.  

JSE-listed companies are required to engage with shareholders if they do not get at least 75% support for remuneration policies and implementation reports that are put to votes at AGMs.  Shoprite, MTN, Sanlam, PSG, ABSA and Remgro are among the big names forced in the past year to engage with shareholders opposing their remuneration policies.  Votes on remuneration policies and implementation reports are both nonbinding advisory votes and hold no legal consequences, but can be embarrassing.  One analyst commented that it was now unusual for companies not to disclose targets for long-term incentives.  The additional money involved can add around 30% to an executive’s package.  In a statement on Tuesday, clothing retailer Truworths said certain shareholders had requested clarification on remuneration.  The board acknowledged that it should be disclosing targets used to make long-term incentive awards and said it planned to do so in the 2019 integrated annual report.

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