BL Premium reports that the board of JSE-listed Mpact has failed to persuade investors to back its remuneration policy with more than half of shareholders voting against the proposed salary increase for executives at the company’s AGM on Thursday.
Mpact is among the largest paper and plastics packaging and recycling businesses in Southern Africa. Two-fifths of the Johannesburg-based company’s investors also snubbed the nonexecutive director’s remuneration. Noting the 51.18% of votes against the remuneration policy and the implementation report, which did not obtain the requisite 75% of votes required, the company board said it would meet shareholders to thrash out their concerns. Though the votes are nonbinding the board said it would consider its outcome in considering amendments to the company’s pay policy. The total package of Mpact CEO Bruce Strong, who has been in the role since 2009, fell to R23.6m at end-December from R33.9m in 2022. The total remuneration of the executive management comprises guaranteed pay and variable pay for performance including short- and long-term incentives. The snub by investors came as the group has been embroiled in a tussle with major shareholder Caxton over its plans to take over Mpact. At the previous AGM in June, Caxton opposed the pay resolutions and is likely to have done so again.
- Read the full original of the report in the above regard by Michelle Gumede at BusinessLive (subscriber access only)
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