Clicks | Proxy voting and governance recommendation
We published a Clicks proxy voting and governance report on 25 January 2019, but became aware of an error, in which we overstated future LTI payouts. This led to the following changes:• A change in the recommendation of our vote for ordinary resolution 7 from ‘AGAINST' to ‘FOR'.
• Adapt our calculations for the range of FY '17 – FY '20 and FY '18 – FY '21 LTI scheme payouts. The calculation was originally performed on the base unit exercise value, and not on the difference between the exercise value and the base value for both the TSR and diluted HEPS LTI schemes. The difference is material and has been the reason why we have changed our recommendation to vote ‘FOR' ordinary resolution 7 regarding the appropriateness of the remuneration policy.
• Conclude that LTI hurdles are appropriate but recommend that the cap placed on LTI payments subsequent to FY '18 be changed from 5x base salary to 3x base salary.
Clicks is an investment holding company. Through its subsidiary, Co. is engaged in providing health and beauty merchandise through a network of 657 stores, including 34 in the neighbouring countries of Namibia, Botswana, Swaziland and Lesotho. Co.'s subsidiaries cover the pharmaceutical supply chain from wholesale and distribution to retail pharmacy, as well as beauty and cosmetic products. Co. operates primarily in southern Africa. Co.'s operating segments comprised of Retail and Distribution. Co.'s brands are Clicks, Musica, The Body Shop, GNC and Claire's.
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