EOH shareholders vote against salary policies
EOH shareholders voted against the endorsement of the remuneration policy and the remuneration implementation report, with 65.36percent of the shareholders voting against the resolutions. The group needed at least 75percent of its shareholders to support the resolutions.
The two resolutions were also a point of contention in Old Mutual’s and Absa Group’s AGMs earlier this year.
Peter Takaendesa, a head of equities at Mergence Investment Managers, said EOH has recently changed some elements of its remuneration policy, particularly the long-term incentive scheme where the previous share option schemes have been replaced with a share ownership plan (SOP).
“The SOP has some attractive elements that limit dilution to existing shareholders such as the commitment to settle SOP awards with shares purchased in the market on vesting instead of issuing new shares. This is particularly relevant at this stage as the share price has sharply declined over the past few years,” Takaendesa said.
Source: iol.co.za
