Pepkor, the parent company of Ackermans and PEP, faced shareholder resistance regarding its executive remuneration reports at its recent AGM. While the company’s overall remuneration policy narrowly passed, the implementation report failed to meet the required 75% approval threshold, receiving only 65.82% of votes in favour. This signifies shareholder concern about how the company’s pay policies are being carried out.
Pepkor acknowledged the dissenting votes and stated they had engaged with a significant portion of shareholders prior to the AGM, valuing the feedback received. The company emphasized that the approval of the remuneration policy itself indicates general shareholder support for their overall pay philosophy. However, they also invited dissenting shareholders to provide specific concerns regarding the implementation report.
According to Pepkor’s 2024 report, CEO Pieter Erasmus received a total compensation package of R25.84 million, including a base salary of R18.851 million. CFO Riaan Hanekom and COO Sean Cardinaal received R26.462 million and R28.02 million, respectively. Analysts have noted that shareholder pushback against executive pay is a growing trend, reflecting concerns about excessive compensation and the alignment of pay with long-term company performance. Investors are increasingly expressing their displeasure with executive pay, believing that they carry the risk and that management is over compensated.