Ramaphosa quizzed on pay
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CAPE TOWN - Johnnic Holdings chairman Cyril Ramaphosa faced a barrage of questions at the company`s annual general meeting yesterday from shareholders about directors` pay.
In the past financial year the group paid a total of R62,9m to directors, up from R35,7m last year. This year`s total included R40,4m of gains on share options exercised, prompted by the group`s unbundling of its stake in MTN Group.
Ramaphosa was asked about further outstanding options and whether the directors` ability to exercise their options ahead of the unbundling constituted insider trading. Acting chief operating officer Christine Ramon said there were no further share options outstanding.
Ramaphosa said the group was advised that options accumulated by the directors over time could be exercised at the time of unbundling, and the total amount due to directors was spelt out in detail in the circular on the unbundling.
Metropolitan Asset Managers chief investment officer Asief Mohamed would not comment on directors` remuneration, but he urged the board to ensure salaries and bonuses were closely aligned with shareholders` interests.
Ramaphosa said this was prominent in the minds of the remuneration committee and the board. Johnnic is trading under a cautionary notice relating to the restructuring of its pyramid structure.
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