THE BOTTOM LINE
Exec pay: Trencor investors cannot contain themselves
Shareholders have expressed their extreme frustration at the group’s dismal long-term performance
Trencor, one of the largest operators of marine cargo containers in the world, has invited shareholders who voted against its remuneration policy at the annual general meeting to engage with the group’s remuneration committee.
This is the second time the board has reached out to its dissenting shareholders in a bid to get an explanation for their opposition. They were initially invited to provide their details to the company secretary by September 7. But, said Trencor on Wednesday, the response to that invitation was limited. So, the board was trying again.
At the annual meeting in August, 36.41% of shareholders voted against the resolution on the group’s pay policy. Although the vote is nonbinding, the JSE listings requirements oblige boards to engage with the dissenting shareholders if the “no” vote is above 25%.
Few people who attended the extremely fractious Trencor meeting would have been left in much doubt as to why such a large block of shareholders voted against the group’s pay policy. While representatives of some of the large institutions maintained their customary silence, a number of smaller shareholders expressed their extreme frustration at the group’s dismal long-term performance.
At R28, the share price is currently at a five-year low and far off its 2014 high of R80. The vocal shareholders made no secret of the fact that the remuneration was too generous for a board that oversees no operational assets. Another teleconference is hardly needed.