EOH non-exec directors want 40% pay increases to clean up ‘legacy governance issues’ that tanked the share price
- Technology company EOH is asking shareholders to increase payments to non-executive directors in some roles by 40% – or more, depending on how much work they do.
- Ordinary non-execs will be paid at least R300,000 per year for four meetings, under the plan, plus R5,000 per hour if they work overtime.
- The increases are necessary because of all the work required to clean up "legacy governance issues", the directors say.
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Non-executive directors at embattled technology company EOH will get fee increases of 40% for specialised meetings – and will earn a minimum of 20% more for ordinary meetings, under a plan the company put to shareholders on Thursday.
And if they work overtime, those non-execs will earn R5,000 per hour, with no limit on how much they could get paid, on top of a guaranteed R300,000 for four meetings.
The extra money is necessary because of all the work necessary to clean up "legacy governance issues", shareholders were told in a circular.
Some of the fees will be backdated to August.
Those shareholders have watched EOH lose around half its value this year as it admitted to instances of apparent fraud that saw it milked by subsidiary directors, with some R1 billion in fake work already identified. They will be asked to vote on the proposal in mid-November.
If the plan is approved, non-executives will be paid a new retainer of R50,000 per year, before being paid per meeting. For the four regularly scheduled meetings they are expected to attend, that will make for R300,000 per year, a 20% increase.
Those also attending meetings of sub committees on audit, risk and governance, remuneration, ethics, and technology, will receive increases of 40% over what had previously been planned.
All of those committees have three regularly scheduled meetings per year. Ordinary members of those committees will now earn at least R105,000 per year. The sub-committee chairs will make R210,000 each, for a total of a little over half a million rand.
Meetings outside the expected ones will come with payments of R5,000 per hour – unless they run to more than three hours, in which case each director will receive a full meeting fee of at least R62,500 for ordinary board meetings and R35,000 for sub committees.
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