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Grindrod shareholders endorse executive remuneration increases

Chairman of Grindrod, Mike Hankinson, says his time in the role has come to an end. Picture: Nhlanhla Phillips, ANA.

Chairman of Grindrod, Mike Hankinson, says his time in the role has come to an end. Picture: Nhlanhla Phillips, ANA.

Published Apr 12, 2022


Logistic and freight group Grindrod Limited say an overwhelming majority of its shareholders gave the company's board the thumbs up on its remuneration policy at its annual general meeting.

It says 75 percent voted in favour of the remuneration implementation, while 25 percent were against the non-binding advisory vote.

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This information is contained in the company's audited Annual Financial Statements for the year ended December 31, 2021, distributed yesterday.

The Nasdaq and JSE-listed company said this was the first time it secured over a three-quarter majority vote.

"This was a reflection of the commitment of the executive to engage with stakeholders and re-evaluate the policy in line with concerns raised," Grindrod said.

According to the company, it has agreed to certain conditions to address the concerns and objections raised by shareholders over the implementation of the remuneration report.

"Grindrod has disclosed the Key Performance Indicators (KPIs) of executive directors that related to the share-price-linked option scheme; for future years, to incorporate the evaluation of scheme participants’ achievement of key performance criteria measured against increased shareholder value over the vesting period," the company said.

Grindrod chief executive Andrew Waller took home nearly R15.9 million in 2021, a 4.9 percent increase from 2020, excluding a bonus of over R8.1m bonus. His basic remuneration meanwhile came in at just more than R6.3m.

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Chief financial officer Fathima Ally received a significantly high pay increase of 170.2 percent, bringing her total package to almost R7.2m.

"The increase of 170.2 percent is not a true measure as prior year remuneration does not include package as CFO for the full year, following appointment to this position on September 1, 2020," Grindrod said.

Xolani Mbambo, the freight division chief executive, bagged just more than a R11.7m total package, a 4.6 percent increase from the previous year.

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Executive chairperson Mike Hankinson, who announced in the annual report that his term in the role was ending, praised the performance of the freight unit.

"Our strategy continues to bring about successful outcomes, underpinned by the Freight Services focus to provide customer solutions for efficient and cost-effective cargo flow,“ Hankinson said in the annual report.

David Polkinghorne, the Grindrod Bank managing director, walked away with just over R10.8m for 2021, a 4.6 percent increase compared to the previous year.

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This brings the total executive board remuneration to R45.67m.

The company also flagged a strong performance for 2021, despite supply chain disruption and the civil unrest in KwaZulu-Natal and Gauteng, among some of the challenges faced.

"This performance was accomplished under difficult circumstances, which challenged logistics supply chains and included extreme weather conditions in Maputo, unrest in KwaZulu-Natal and Gauteng, port congestion, the fire at the Richards Bay port terminal, and security concerns in northern Mozambique," the company said.

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