Published articles on share incentives

Media coverage on Share Incentive Structures and ‘Long Term’ Remuneration

With recent volatility brought about by Covid-19, companies will likely re-enter a new era of innovation and learning. Here is a selection of recent articles on executive remuneration, with specific focus on share-based payments and the alignment of management with the shareholders of a company.

Rewarding the wrong things

Bonuses paid at struggling hospital company Mediclinic show how executive reward is based on bad metrics. For Mediclinic, the company that has managed to erase 70% of its shareholder value over three years, the FM’s report last week querying why it’s paying bonuses (share-based payments) to its directors this year didn’t go down well.

Financial Mail | Rob Rose

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SA CEOs: paid for perfection but delivering mediocrity

A long list of companies have destroyed shareholder value as a result of poor management decisions or behaviour that falls way short of good governance standards. But regardless of how they perform, one thing has remained distressingly constant – exceedingly generous levels of executive pay and share-based payments. It seems our top executives all too often are being paid for perfection while delivering mediocrity at best.

Financial Mail | Ann Crotty

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Executive incentives: what if the share price drops?

From an incentive perspective the real message from this year’s developments is that the best use of the CEO’s time would have been lobbying the MSCI decision-makers rather than focusing on finding the next great tech trick.

Financial Mail | Ann Crotty

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Tsogo Sun set to pay millions for directors’ losses

Tsogo Sun, the hotel and gaming group that has lost about a third of its value in the past two years, is set to bail out executives who face losses on the R200m interest-free loan they were granted in 2014 to purchase shares.

Financial Mail | Ann Crotty

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Governance of executive share schemes and ‘skin in the game’

Executive share schemes link the fortunes and performance of the organisation to the fortunes and performance of the executive team.

Moneyweb | Chris Blair and Bryden Morton

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