Old Mutual Shareholders Reject R300m CEO Pay Incentive

In Short

Old Mutual shareholders have pushed back on executive pay at the insurer’s annual general meeting.

The vote targeted a long-term incentive linked to CEO Jurie Strydom, with a potential payout of R300 million.

Old Mutual will now engage with investors who voted against the remuneration plan.

What Happened

At its July 16, 2026 AGM, Old Mutual shareholders voted against adopting the company’s remuneration policy and remuneration implementation report.

Old Mutual’s board needed 75% support under a nonbinding advisory voting framework, which is a guideline vote that signals investor sentiment but does not automatically change pay outcomes.

The remuneration policy received 68.39% support and the remuneration implementation report received 70.72% support. Both passed with a simple majority, but failed the 75% threshold.

A key point of dissent was a R300 million outperformance bonus for CEO Jurie Strydom. The structure uses share appreciation rights, which are a promise of value if the share price rises above a set starting point.

Old Mutual disclosed that Strydom received R300 million worth of share appreciation rights at commencement, based on a strike price of R10.87. The maximum gain is capped at R300 million if the share price reaches double the strike price, R21.74, by May 12, 2030.

By Tuesday, Old Mutual shares were trading around R13.91.

Why It Matters

Executive pay votes have become a sharper tool for shareholders in South Africa’s listed market, especially when returns lag.

Old Mutual’s share price has risen about 18% over five years, while rival Sanlam gained about 50% over the same period, according to the report. Old Mutual’s market value was also reported at about R59 billion versus Sanlam’s R188 billion.

For operators and investors, this is another reminder that incentive design matters. Pay structures tied to share price performance can still face backlash when the broader value story, like consistent growth and clearer capital allocation, is not yet convincing.

Old Mutual said it will continue engagement with shareholders who voted against the plan, which could lead to changes in future remuneration structures and disclosure.