Spar, a retail company, will hold a special general meeting in early September to allow shareholders to vote on directors’ pay. This comes after the vote on remuneration at the February Annual General Meeting (AGM) failed to pass, resulting in directors earning no pay.
- It is highly unusual for votes on directors’ fees not to reach the required majority and for directors to work without compensation.
- The non-executive directors of Spar, including Shirley Zinn (former non-executive director of Shoprite) and Pedro da Silva (with extensive foreign retail experience), have not received payment since March 1.
- After receiving feedback from shareholders, Spar’s remuneration committee has restructured the proposed fees. The new fees include a retainer fee and meeting attendance fees.
- Spar claims that the new fees have been independently benchmarked against a peer group consisting of direct and indirect competitors, as well as other retail companies listed on the Johannesburg Stock Exchange (JSE).
- Shareholders will need to vote on the new policy regarding directors’ pay on September 5.