Shoprite Holdings is facing significant investor opposition to a proposed special incentive plan for CEO Pieter Engelbrecht. Institutional Shareholder Services (ISS) and Glass Lewis, two influential shareholder proxy advisory firms, have recommended that investors vote against the plan at the company's annual general meeting on November 6.
The firms questioned the need for another substantial award on top of Engelbrecht's existing incentive programs. Several large institutional investors, including funds managed by the New York City Comptroller and Norway's largest pension company, KLP, have also said they intend to vote against the compensation proposals.
The opposition presents a corporate-governance challenge for the South African retailer.