(Alliance News) -Â Old Mutual Ltd on Friday said it was "disappointed" as a significant minority of shareholders voiced discontent over pay.
At its annual general meeting on Friday, around 46% of votes cast were against the Anglo-South African financial services firm's non-binding advisory vote on remuneration policy, with 54% in favour. Further, a third of votes cast were against a non-binding advisory vote on Old Mutual's remuneration implementation report.
There were also minor rebellions over the resolution to reappoint KPMG Inc as joint independent auditors, with 29% of votes against, and the election of Olufunke Ighodaro as both a director and to the firm's audit committee saw opposition of 19% and 18% respectively.
Despite some opposing votes, all resolutions proposed at the AGM were passed.
Old Mutual said it was "disappointed" with the voting outcome on the 2020 remuneration policy and implementation report following "the significant improvement in the voting outcome" for the 2019 report.
"The economic uncertainty created by the Covid-19 pandemic and the impact on business performance made 2020 a challenging year to set and implement competitive remuneration policies. We have engaged extensively with shareholders to understand their concerns and we recognise the fine balance between remuneration outcomes which continue to motivate and retain our best people whilst remaining aligned to shareholders' interests," said Itumeleng Kgaboesele, chair of the remuneration committee.
Old Mutual said it will continue engaging with shareholders.
Shares in London were up 3.2% on Friday afternoon, while the stock was 2.8% higher at ZAR13.09 in Johannesburg.
Earlier on Friday, Old Mutual said its profitability so far in 2021 has improved due to a strong performance in local equity markets.
The company reported results from operations up 48% to ZAR1.81 billion in the first quarter ended March 31 from ZAR1.23 billion a year previously.
Old Mutual revealed that it paid out ZAR2.7 billion for Covid-related death claims in the three-month period, leaving around ZAR1.3 billion in its reserve set aside for the pandemic.
"We continue to closely monitor our claims experience as future waves and their impacts remain uncertain," the company commented.
Funds under management increased to ZAR1.15 billion, a 3.9% year-on-year rise from ZAR1.10 billion. Old Mutual remarked that the higher FUM provides a "strong asset base on which to earn fees in the second quarter".
Gross written premiums were increased 2.0% to ZAR5.07 billion, higher than the ZAR4.97 achieved a year prior. The company partly attributed growth to solid customer retention and successful acquisition rates in East Africa and Nigeria.
Looking ahead, Old Mutual commented that the strength of its balance sheet and liquidity would enable it to withstand Covid-induced volatility, and "accelerate growth as opportunities arise". However, it did caution that subsequent coronavirus waves could place pressure on earnings in the short term.
By Will Paige; willpaige@alliancenews.com; updated by Lucy Heming;Â lucyheming@alliancenews.com
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Old Mutual Lim. (OMU)