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BL Premium reports that Mediclinic International’s disappointing offshore ventures have resulted in the private hospital group shedding more than 70% of its value in the past three years, but its senior executives have continued to get generous bonuses.
But, there is said to be growing disquiet among a minority of institutional investors, and the company may face tough questions at its AGM later this month. Mediclinic’s 2019 annual report shows its CEO, Ronnie van der Merwe, and CFO, Jurgens Myburgh, got short-term incentive bonuses of £110,000 and £87,000 respectively for the period, despite the company’s after-tax loss of £130m and a 43% drop in the share price. These bonuses were in addition to their guaranteed packages of £447,000 and £396,000. They did not qualify for long-term bonuses for 2018, but are set to receive them in the coming year to the extent of 200% of base salary for Van der Merwe and 150% for Myburgh. The rewards were in line with Mediclinic’s remuneration policy, which got the thumbs-up from an overwhelming 93.5% of shareholders at last year’s AGM. Investec Asset Management, which holds 3% of Mediclinic’s shares, has been unhappy with Mediclinic’s remuneration policy for some time and voted against the resolution covering directors’ pay at last year’s AGM. Meantime, Sanlam Investments portfolio manager Charl de Villiers said: "We are unlikely to support the [remuneration] policy as it stands."
- Read the full original of Tamar Kahn’s report in the above regard at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page