Mr Price Group CEO Mark Blairs remuneration increased markedly, by more than 300, to R45.91 million in the year to March 31, from R10.67m the year before, after he benefited mainly from significantly higher long-term and short-term incentive share awards.
Executive remuneration is closely watched by shareholders because it has an impact on the performance of the company, the direction that the company is going, if the pay is in line with the companys peers, how the executive performed according to targets and it can also indicate how much the company is willing to spend to attract the right talent to a company.
In the past year, Blairs guaranteed pay increased by only 3 to R9.26m from R8.99m, but he received a R9.59m short-term incentive award versus nil the year before, while the share options for his long-term incentive awards were worth R25.79m, compared with nil the year before.
The big increase in total remuneration was even though the remuneration report noted about his performance against targets, that include headline earnings growth and return on equity goals, stakeholder engagement, leadership and strategic enablement The final outcome of 116.5 of ABS annual basic salary is lower than the target of 123 of ABS, due to the financial performance target not being met.
The remuneration committee explained the payout of short-term incentives to executives, even though not all their targets were not met, was due to the achievement of some of the performance metrics.
