Shareholders vote against Tongaat Hulett remuneration policy

Peter Staude will be stepping down as the CEO of Tongaat Hulett.  (Tongaat Hulett website)
Peter Staude will be stepping down as the CEO of Tongaat Hulett. (Tongaat Hulett website)

Tongaat Hulett [JSE:TON] shareholders have voted against a non-binding advisory resolution endorsing the company’s remuneration policy at its Annual General Meeting. 

The AGM was held in Amanzimnyama, Tongaat, in Kwa-Zulu Natal earlier on Wednesday. 

In a note to investors, Tongaat Hulett said that only 40.64% of votes were in favour of the non-binding remuneration resolution; 59.36 were against it and 9.04% abstained. 

Other resolutions, including the reappointment of auditors, directors and more, easily passed. 

The only other resolution that failed to achieve a 75% threshold of votes cast was a non-binding advisory vote endorsing the company’s implementation report. 

The company said it would meet with shareholders who voted against the non-binding advisory votes to hear their views.

The remuneration vote applied to Tongaat Hulett's remuneration report contained in the company’s latest integrated annual report.

According to the report, the group's longtime CEO Peter Staude earned R10.1m in the year ended 31 March 2018 – which included a cash package of R8.79m and retirement and medical contributions of R1.3m.

Murray Munro, the group’s Chief Financial Officer, earned a cash package of R5.19m and retirement and medical contributions of R779 000, for a total of R5.97m. Neither received a cash bonus, as they had in 2017. 

The agriculture and agri-processing company had on Tuesday announced that Staude would be stepping down at the start of October.

Munro stepped down as CFO on Tuesday, but is set to remain as an employee of the company. 

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