Retail group SPAR has committed to engaging with unhappy shareholders after a significant majority rejected the company's approach to executive compensation. At the annual general meeting held on Wednesday, just 38.57% of eligible voters endorsed the implementation of the remuneration report in a non-binding ballot, meaning 61.43% opposed it. The retailer's broader remuneration policy also fell short of the required 75% approval threshold, securing only 69.54% support.
Under the King IV codes of governance, companies that fail to reach the 75% mark are expected to initiate a period of formal engagement with shareholders. SPAR confirmed it would invite dissenting shareholders to raise their comments, concerns and recommendations, followed by a virtual meeting with board representatives. The company said it valued "constructive engagement" on pay-related matters and that its remuneration committee sought to ensure "remuneration across the group is aligned with its business philosophy and strategy".
The vote comes amid scrutiny of executive pay at the retailer. Former CEO Angelo Swartz, who stepped down at the end of February following a surprise resignation, received total remuneration of R18.192 million during the 2025 financial year — roughly R1 million more than the previous year and approximately 169 times the salary of the company's lowest-paid worker. That employee earned R107 435 in the same period, according to SPAR's integrated annual report. The company has indicated it will raise the minimum pay package by 40% to R150 000 per annum in the 2026 financial year as part of the first phase of a living-wage initiative.
SPAR has faced mounting difficulties in recent years, stemming from costly international ventures and significant problems with the implementation of a new IT system domestically. For the full year ended 26 September, the group reported an attributable loss of around R4.8 billion, compared with a profit of R352 million in the prior period. The company also withheld its dividend after absorbing R5 billion in writedowns linked to its withdrawal from overseas markets, with its last dividend payment made at the close of the 2022 financial year.
On Thursday, SPAR's share price edged up nearly 1%, though the stock remains down approximately 30% year to date and close to 50% over the past twelve months. Among rival retailers, Pick n Pay has also shed roughly a third of its value over the past year, while its recently listed discount division Boxer has risen about 7%. Shoprite declined 4% on a one-year basis, with Woolworths down 1%.
