Shoprite Holdings is facing resistance to a proposed multimillion-rand incentive plan for Chief Executive Officer Pieter Engelbrecht, as shareholders prepare to vote on the measure at the retailer’s annual general meeting on Nov. 6.
Institutional Shareholder Services and Glass Lewis, two major proxy advisory firms, have recommended that investors reject the plan. They question the repeated use of exceptional awards in addition to Shoprite’s existing incentive programs.
The vote will also test investors’ newly acquired power to cast binding votes on executive pay in South African equities. Some of North America’s largest investors have said they will follow the advisers’ recommendations.
Sources: Bloomberg Markets.