At the May AGM, Old Mutual became South Africa’s second Top 40 listed group, after Shoprite, where shareholders voted against the remuneration of executives. Photo: Karen Sandison/African News Agency (ANA)

CAPE TOWN – Old Mutual shareholders will have to wait until the first quarter of 2020 to see how the insurer’s directors were remunerated for 2018, after shareholders rejected a resolution to approve their pay at the annual general meeting (AGM) earlier this year.

At the May AGM, Old Mutual  became South Africa’s second Top 40 listed group, after Shoprite, where shareholders voted against the remuneration of executives. 

The resolution on the implementation of the remuneration implementation report was rejected by 69.13 percent of shareholders.

The vote on its remuneration policy received 54 percent of votes in favour – 75 percent is required for the resolution to pass. 

Old Mutual chief executive Peter Moyo was suspended a week later on other issues relating to alleged conflicts of interest.

Old Mutual subsequently requested shareholders to send written submissions of their concerns about the remuneration policy by August 22.

Old Mutual’s head of investor relations, Sizwe Ndlovu, said the company had received only one written submission seeking specific disclosures around management incentives, such as on-target payouts and stretch targets. 

“We aim to incorporate these into our 2019 remuneration report,” said Ndlovu.

He said the directors had in the meantime been remunerated for 2018.

information about which aspects of the remuneration plan was finally paid, following the failed shareholder resolutions, would be published in the 2019 remuneration report in the first quarter of 2020.

He said Old Mutual “unfortunately cannot discuss” whether the remuneration policy for 2019 had been changed until shareholders had been consulted about potential changes.

For 2018, Old Mutual ’s directors would have scored handsomely from the group’s return to South Africa from the UK, and from various executive incentive programmes.

Executive director Moyo’s total remuneration for 2018 would have increased more than 48 percent to R50.57 million over the R34.08m he received in 2017. 

His pay included a guaranteed remuneration component, short- and long-term incentives, an Old Mutual managed separation plan, dividends and “distributions”’ from Nedbank and Quilter.

Fellow directors Clarence Nethengwe’s total remuneration would have increased 159 percent to R16.61m for 2018, Karabo Morule’s would have risen 174 percent to R19.42m, Iain Williamson’s by 156 percent to R27.44m, Dave Macready’s remuneration by 159 percent to R39.27m, while Clement Chinaka’s would have gone up 130.3 percent to R18.15m.

In that year – admittedly a tough one for companies that invested their clients’ funds in equity and other markets – Old Mutual’s assets under management fell 3 percent and its return on net asset fell to 18.6 percent versus 22.9 percent in 2017. Adjusted headline earnings fell 11 percent to R11.5 billion.