SOUTH AFRICA – South Africa’s Grand Parade Investment (GPI), which represents Burger King saw its pay policy rejected after 60.6% votes cast by investors went against the remuneration policy,reports Business Day.
“I think shareholders know that fundamentally Grand Parade has not performed for at least three years, so why should the revolving door of management get performance bonuses and pay increases?” said independent analyst Anthony Clark.
This comes after yet another defeat to Spur Corporation, which count grand parade as a major investor after shareholders cast a 79.45 vote-down to the group’s pay policy.
GPI has been undergoing a tumultuous time following the resignation in the group’s top management officials with the latest resignation from the CEO, Prabashinee Moodley.
“Given Ms Moodley’s passion and expertise in food service and retail, Ms Moodley has decided to step down from her position due to the current market sentiment with regards to the quick-service restaurant industry,” the company said.
Previously a group of shareholder activists managed to vote two new nonexecutive directors, former SABMiller executive Mark Bowman and former Spur finance chief Ronel van Dijk onto the beleaguered board.
The activists have argued that the board does not have the requisite skills to build a quick-service restaurant empire.
At the AGM, a large chunk of investors indicated that they were keen on a shake-up of the company’s audit and risk committee.
During the meeting 51% of votes cast ratified the reappointment of Walter Geach as a member of that committee, and 59% agreed that Norman Maharaj should stay on in that role.
Clark said while concerns were raised about pay and the lack of diversity on the board, the AGM “was much more restrained, dignified and respectful” compared with recent meetings with shareholders.
According to Clark, management spoke of plans to expand the Burger King chain, though seven unprofitable stores had been earmarked for closure.
The management also said that the Dunkin’ and Baskin-Robbins brands would be cut from the portfolio.