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Moneyweb reports that in an unusual move, Tongaat Hulett’s remuneration committee has listened to the concerns of its shareholders and slashed the remuneration of its top three executives.
The move is likely to be welcomed by many shareholders who were dismayed by the generous awards made for financial 2020 before there was sufficient sustainable evidence that progress had been made in turning around the troubled sugar and property group. However, the decision may have been unavoidable given the hefty increase in headline losses reported for the year to end-March 2021. In the group’s just-released annual report, the remuneration committee also assured shareholders that the board “remains committed to making those responsible for historic mismanagement accountable”. Group CEO Gavin Hudson’s remuneration in 2021 was cut to R9.9 million from R25.4 million in 2020. CFO Rob Aitken’s pay package was cut to R6.6 million from R15.3 million and executive director Dan Marokane saw his pay reduced to R6.9 million from R16.7 million. The reductions in overall pay were due to substantial cuts in the turnaround incentives as well as the non-payment of bonuses. The R34 million reduction in the pay bill for the top three executives represents a substantial chunk of the R100 million-plus of savings on employee incentives the remuneration committee says will help compensate for the losses at the sugar refinery suffered in the second six months of the year. Despite the executive pay cuts, the remuneration committee said the group had been able to retain good talent and continued to attract excellent skills during the year.
- Read the full original of the report in the above regard by Ann Crotty at Moneyweb
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