BL Premium writes that Astral Foods, SA’s biggest poultry producer, was right to question shareholders for them inexplicably voting down the company’s 2021 remuneration policy, as the new policy corrected gripes they had a year before.  

There is a growing criticism with executive pay in SA and many critics are quick to point out when remuneration policies are voted down.  But they don't necessarily consider whether the shareholders who were against a remuneration policy actually told a company where the faults were.  Also, they don’t consider if a company had listened to investors’ issues in the past.  As much as 58% of eligible shareholders voted against Astral’s report last Thursday. The report detailed fees paid to the chairperson as well as to other non-executive directors.  The strong vote against the policy triggered a JSE rule that states that if 25% or more vote against a remuneration policy, the company is forced to approach dissenting shareholders to address their concerns.  But, what is frustrating for Astral is that this particular remuneration policy has been sent back before.  “The approved 2020 remuneration policy, after wide consultation, was refined to produce the 2021 remuneration policy, which among others included a clawback clause. The vote against the remuneration policy is truly incomprehensible,” Astral said in a statement.  Astral and any dissenting shareholders will now have to have yet another conversation.

• Read the original of the report in the above regard by Alistair Anderson at BusinessLive (paywall access only)
• Read too, In unusual move, Astral hits back at shareholders for rejecting executive pay policy, at BusinessLive

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