Imperial brings in incentive plan
Imperial Logistics has introduced a performancebased incentive plan for management after a group of shareholders rejected its remuneration policy in October 2018.
Imperial Logistics has introduced a performance-based incentive plan for management after a group of shareholders rejected its remuneration policy in October 2018.
Imperial chair Phumzile Langeni said in the company’s 2019 annual report the group’s remuneration committee had discussions with the shareholders and conducted a “detailed” review of the remuneration policy and its implementation.
“This process emphasised the importance of fair and transparent remuneration policies and practices at all levels of the organisation, based on the achievement of clear performance goals and consistent long-term strategic decision-making.
“We have since made a number of material changes to the group’s remuneration policy and the way we implement it,” Langeni said.
She said the company, one of the largest distributors of pharmaceuticals and consumer goods in southern, east and west Africa, had replaced the annual deferred bonus plan, which had no performance conditions, with the conditional share scheme.
The conditional share plan has performance conditions that incentivise long-term sustainable achievements.
“The board insists that remuneration be linked to measurable results. We will therefore ensure implementation of management’s commitment to systematically develop and introduce relevant and robust key performance indicators, to align management scorecards and incentives with delivery of strategic objectives,” she said.
Imperial generated 27% of revenue and 38% of operating profit in SA in the 2019 financial year.
CEO Mohammed Akoojee said the company was expecting improved performance in the 2020 financial year, largely thanks to new contract gains, new acquisitions, restructuring, exiting non-core businesses and reduced costs.
He said he expected the company to deliver “high singledigit revenue growth, and low double-digit growth” in operating profit and headline earnings per share in the year to June 2020.