Datatec has decided to restructure its maligned bonus scheme for directors.
The group came under fire from shareholders after it paid directors a hefty bonus after the sale of the UUNet stake.
"All future remuneration, bonuses and share incentive schemes for head office executives will be based solely on the overall performance of the group, as reviewed and approved by the remuneration committee," the group says in a statement released yesterday.
Datatec originally paid bonuses of R36 million. Chairman Jens Montanana and financial director Robin Rindel received a total of R11.8 million, while the UUNet executives received R24 million.
Montanana and Rindel`s R11.8 million has been cut by R4 million.
The two are buying shares with most of the proceeds "to demonstrate their confidence in the group and an alignment of their interests with those of all shareholders".
They have elected not to sell those shares for three years or until the share price reaches R28 and holds there for 10 trading days, whichever comes sooner.
However, it has decided that the R24 million bonus paid to 21 executives directly employed by UUNet will stand.
The bonuses, coupled with an insider trading fine paid by Datatec on behalf of Montanana and Rindel, led to vociferous objections by shareholders as well as the Financial Services Board, which oversees the Insider Trading Act.
Datatec announced last week that as a result of negative publicity around the issue, it was backing down on that decision and the fine was to be paid by the directors themselves.
Related stories:
Datatec directors bow to negative publicity
Datatec issued the announcement below to the market through SENS
Share