Almost 60% of the minority shareholders in Mediclinic, South Africa’s biggest private hospital group, have voted against its latest executive pay report, signalling mounting unhappiness among institutional investors about its remuneration policy, reports Business Day.
Mediclinic has shed more than 70% of its value in the past three years, thanks to a series of disappointing offshore ventures that saw it write down the value of its investments in the UK-based Spire Healthcare Group and Switzerland’s Hirslanden by a combined £405m in the year to end-March. Its business in the Middle East also disappointed investors, and it has battled tough trading conditions in South Africa.
The report said while the bonuses paid to top executives were considerably smaller in 2019 than they were the year before, the fact that executives received any bonuses at all has not gone down well with some investors.
Mediclinic’s biggest shareholder is Remgro, which holds 44.6% of its stock, which means 58.8% of minority shareholders voted against the report. Investec Asset Management, which voted against the pay report, said one of its most pressing concerns about Mediclinic’s remuneration policy was the lack of any metric based on return on capital. Sanlam also voted against the pay report.Full Business Day report