PREMIUM African financial services group, Old Mutual Limited said it was disappointed with the outcome of the voting on the 2020 Remuneration Policy and Implementation Report following the significant improvement in the voting outcome for the 2019 report.
The JSE and London Stock Exchange-listed group highlighted that 45.546 percent of shareholders voted against the non-binding advisory resolution on the director’s remuneration policy, while 32.505 percent voted against its implementation.
This falls short of the requisite 75 percent majority votes.
For 2019, the non-binding advisory resolution on the endorsement of the remuneration policy report did achieve more than 92 percent shareholder support.
Commenting on the issue, Chairman of the Remuneration Committee, Itumeleng Kgaboesele who assumed the role in September 2019 said; “The economic uncertainty created by the COVID-19 pandemic and the impact on business performance made 2020 a challenging year to set and implement competitive remuneration policies.
“We have engaged extensively with shareholders to understand their concerns and we recognise the fine balance between remuneration outcomes which continue to motivate and retain our best people whilst remaining aligned to shareholders’ interests.”
The 175+-year-old insurance giant said it will continue engaging directly with shareholders to understand their exact issues and concerns to make appropriate decisions concerning remuneration policy and implementation for the current and future years.
According to Mr Kgaboesele, the Group will extend an invitation to shareholders through a SENS announcement setting out the manner and the timing of the engagement in due course.
“We remain committed to the continued improvement of our remuneration policies and practices through open and transparent engagement with all stakeholders,” he said.
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