Shoprite CEO gets $7,4m bonus

Chronicle (Zimbabwe) - - Business -

SHOPRITE Hold­ings Ltd dou­bled chief ex­ec­u­tive of­fi­cer Whitey Bas­son’s pay last fis­cal year to R100,1 mil­lion ($7.4 mil­lion), thanks to a bonus from Africa’s largest food re­tailer for beat­ing a profit-growth tar­get.

Bas­son’s re­mu­ner­a­tion in­cluded R49,7 mil­lion in ba­sic pay for the 12 months through June, in line with the pre­vi­ous year, and a R50 mil­lion one-time per­for­mance-re­lated bonus, the Cape Town-based com­pany said in its an­nual re­port.

Trad­ing profit growth of 15 per­cent beat an in­ter­nal tar­get of 11 per­cent, the re­tailer said. Dave Lewis, the CEO of Tesco Plc, the UK.’s big­gest su­per­mar­ket chain, got 4,63 mil­lion pounds ($5.96 mil­lion) in fis­cal 2016.

Iain Moir, the CEO of South African food and clothes re­tailer Woolworths Hold­ings Ltd., was paid R53,7 mil­lion in the year ended June 26, in­clud­ing base salary of R16,4 mil­lion and a per­for­mance-re­lated bonus of R15 mil­lion.

The de­ci­sion comes less than a year af­ter the South African gov­ern­ment-owned Pub­lic In­vest­ment Corp voted against the com­pany’s re­mu­ner­a­tion pol­icy be­cause the R50,1 mil­lion pay awarded to Bas­son was mostly a fixed pay­ment, rather than a per­for­mance-based salary.

The Pre­to­ria-based PIC owns al­most 10 per­cent of Shoprite, ac­cord­ing to data com­piled by Bloomberg. The money man­ager couldn’t im­me­di­ately com­ment on the 2016 pay.

Other rea­sons given by Shoprite for the bonus in­clude that Bas­son has not re­ceived a ba­sic pay in­crease since 2013 and no one-time pay­ments for five fis­cal years, ac­cord­ing to the re­port. The re­tailer also cited the CEO’s length of ser­vice at the com­pany. The 70-year-old has worked at Shoprite for 45 years and has been at the helm since 1979.

“Re­cently in South Africa it has be­come a trend for re­tail­ers to re­cruit their CEOs from multi-na­tional re­tail­ers out­side” the coun­try, Shoprite said.

“The war for tal­ent in this space is not con­fined to the African con­ti­nent.”

Shoprite shares gained 1,5 per­cent to R194,18 as of 3:01PM in Jo­han­nes­burg on Mon­day, valu­ing the re­tailer at R112 bil­lion.

The stock fell 4,1 per­cent dur­ing the year through June, com­pared with a 1,9 per­cent gain on the FTSE/JSE Africa Food and Drug Re­tail­ers In­dex. — Bloomberg.

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