BL Premium reports that the pay of top executives at Truworths failed to get shareholder approval at its recent annual general meeting (AGM).

This highlighted a growing trend of investors expressing unhappiness with executive pay levels in a system that has no consequences for the committees that decide on bonuses. A previous remuneration vote at Truworths failed in 2019, but pay votes were passed in 2020. Shareholders at AGMs of listed companies must vote to express approval or dissatisfaction with the companies’ remuneration of their top staff, but these votes are non-binding. If the votes do not get the required 75%, listed companies are obliged to meet or discuss issues with unhappy shareholders. Activists and investors say that as discontent by shareholders on pay levels mounts, there should be consequences for the directors who decide on remuneration. The new Companies Amendment Bill proposes that the remuneration committee, made up of board members, must be made to stand for re-election if votes on pay fail. Truworths is not unique. Competitor TFG, which owns Fabiani, Foschini and Markham, has had at least one of two pay votes fail for three consecutive years. Mr Price, Capitec, Nedbank and FirstRand all had remuneration votes fail at their 2021 AGMs.

• Read the full original of the report in the above regard by Katharine Child at BusinessLive (subscriber access only)

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