We've got news for you.

Register on Sunday Times at no cost to receive newsletters, read exclusive articles & more.
Register now

Executive pay: Moan as much as you like, it won’t help a jot


Executive pay: Moan as much as you like, it won’t help a jot

Concerns by shareholders might prompt the odd tweak, but you can be sure nothing will substantially change

Ann Crotty

Votes on remuneration policy and implementation at annual general meetings are nonbinding advisory votes, which essentially means the board can ignore them.

The votes are more about providing institutional shareholders with an opportunity to show they’re engaged in reining in excess pay levels. They are the investment community’s opportunity for a bit of virtue signalling.

A more worrying consideration, as suggested by PSG (https://www.sharenet.co.za/v3/quickshare.php?scode=PSG) CEO Piet Mouton, is that many of the “no” votes on remuneration are generated automatically by proxy advisory services. Whatever the source, the board never gives the impression it is ignoring these earnest votes...

This article is reserved for Sunday Times Daily subscribers.
A subscription gives you full digital access to all Sunday Times Daily content.

Sunday Times Daily

Already subscribed? Simply sign in below.

Questions or problems?
Email helpdesk@timeslive.co.za or call 0860 52 52 00.

Previous Article