Shoprite CEO pay policy faces shareholder backlash as almost half vote against it
Shoprite’s CEO earned R117.8 million, boosted by a once-off award, as shareholders gave a separate CEO share plan a weaker vote at the AGM.
Shoprite's CEO, Pieter Engelbrecht, received a substantial pay package of R117.8 million in the 2026 financial year, marking a 35.4% increase from the previous year. This significant rise was due to a once-off R36.4 million award from the Executive Super Stretch Incentive (ESSI) scheme, which concluded its three-year performance period.
However, at the annual general meeting (AGM) of 6 November, the CEO's Executive Share Plan (CEO-ESP) remuneration policy faced a stronger vote of opposition from shareholders. Despite the CEO-ESP resolution being passed, 46.19% of ordinary shares voted against it, while 53.81% supported it. Every deferred share that voted backed the policy, resulting in a combined vote support of 70.91% in favor and 29.09% against.
Engelbrecht's total remuneration included a guaranteed R22 million package, a short-term incentive of R21.3 million, R17 million in deferred shares, and R18.2 million from vested CEO-ESP awards. The AGM results, released on 6 November, revealed that Shoprite aims to maintain a CEO and CFO total remuneration position in the upper quartile, reflecting its status as South Africa's largest retailer.
The remuneration committee approved a 4% salary increase for executive directors for the 2027 financial year, which considered inflation, cost-of-living pressures, affordability, and fair-pay considerations.
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