JUST over a third of participating shareholders at Northam Platinum Holdings’ annual general meeting on Monday voted against the platinum group metal (PGM) miner’s remuneration report for the year ended June 30, 2024.
A total of 33.67% were opposed the report with most of the balance approving it and less than 1% abstaining.
Northam called on dissenting shareholders to send their comments regarding the report to management for consideration. This is in line with regulations which apply when more than 25% of votes cast move against such a resolution.
Commenting in its remuneration report, Northam said its philsophy was to link executive pay to share price performance, adding that the firm’s share had been the best performing of its peer group over one, three, five and 10 years.
The report also pointed out there had been no share dilution in the last 10 years despite building major production growth.
Analysts have recently tipped Northam as the go-to stock in the event investors are seeking a return to the sector. Coronation, a major South African asset management company, was said by BusinessLive recently to have bought Northam shares.
Northam also said, in a benchmarking exercise, that CEO Paul Dunne’s pay and total guaranteed package at R13.5m, was just below the peer group median, although at 7% higher year-on-year it was among the highest of increases. A 9% year-on-year increase in pay and TGP was awarded to the CEO of Impala Zimplats, according to Northam.
Investors may, however, be kicking back against the pay increases given the poor outlook for PGMs in the short- to medium-term. Dunne said recently production from South Africa’s PGM sector was in terminal decline.
