Moneyweb reports that only 26.98% of ordinary shareholders voted in favour of the remuneration policy of Shoprite Holdings at the group’s October annual general meeting (AGM).  

This startling revelation was published on Thursday, when results from the meeting disclosed the votes from the ordinary shares and deferred shares separately for the first time.  On the second vote on remuneration – that is, its implementation during fiscal 2018 – only 31.44% of ordinary shareholders voted in favour.  There was thus significant shareholder pushback against both resolutions, namely 73% on the policy and 68.5% on pay last year.  Both resolutions were passed in the aggregate, as votes from both the ordinary shares as well as high-voting deferred shares were combined.  Almost certainly all major shareholders – including the Public Investment Corporation (PIC), which holds 11.41% of the group – voted against the non-binding remuneration resolutions.  Under JSE regulations, Shoprite in November invited dissenting shareholders to “forward their concerns/questions on the remuneration policy and the implementation thereof to the company secretary”.  It said “meetings will be arranged with individual dissenting shareholders to discuss their concerns/questions”.  Shoprite has provided no further feedback to the market.  Newly-appointed Sars Commissioner Edward Kieswetter is chairperson of Shoprite’s remuneration committee, but it is unlikely that he will remain in that position.

• Read the full original of Hilton Tarrant’s report on this story at Moneyweb

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