**Bidvest Group Faces Shareholder Backlash Over Olympic Trip Funding**
**Meta Description:** Bidvest Group seeks shareholder approval for reimbursing directors’ Olympic trip, facing opposition from major investors and proxy advisory firms.
**URL Slug:** bidvest-group-olympic-trip-funding
**Bidvest Group Faces Shareholder Backlash Over Olympic Trip Funding**
South African conglomerate Bidvest Group Ltd. is under scrutiny from its shareholders after proposing to reimburse its chairman and two non-executive directors for expenses related to a trip to the Paris Olympics. Institutional Shareholder Services Inc. (ISS), the leading proxy advisory firm globally, has advised shareholders to vote against the reimbursement request for Chairman Bonang Mohale, Lead Director Renosi Mokate, and non-executive director Sindi Mabaso-Koyana. The vote is scheduled for the company’s annual general meeting on December 1 in Johannesburg.
In response to inquiries, Bidvest stated that it engaged with shareholders during a pre-AGM call last week, where this resolution was discussed. The company noted that there have been constructive follow-up discussions with some shareholders since then. ISS expressed concerns in its report, indicating that the reimbursement request could undermine the independence of the directors. Bidvest defended its request for a 1 million rand reimbursement by highlighting its role as a sponsor of the South African Sports Federation and Olympic Committee.
ISS’s report emphasized that support for the resolution is not advisable due to the perceived excessive nature of the amount requested. Calvert Investment Management Inc., a minor shareholder in Bidvest, has announced its intention to follow ISS’s recommendation and vote against the resolution. Other notable investors, including the California Public Employees’ Retirement System (CalPERS), the British Columbia Investment Management Corporation, and the New York City Employees’ Retirement System, have also indicated they will oppose the reimbursement.
The Florida State Board of Administration remarked that the payments are “excessive and could be considered to potentially compromise independence.” Some investors have raised concerns about the overall independence of the Bidvest board, citing an overrepresentation of executives.
In contrast, Glass Lewis & Co., a competitor of ISS, has not recommended similar action to its clients. Norges Bank Investment Management and the California State Teachers’ Retirement System have expressed their support for the resolution.
Bidvest’s major shareholders include the Public Investment Corporation, which manages pensions for South African government employees, along with Westwood Global Investments LLC and Standard Bank Group Ltd. When contacted, Mabaso-Koyana directed inquiries to Bidvest, while Mohale acknowledged the query but did not provide further comments. Mokate did not respond to attempts for contact.
The company emphasized the significance of the Paris Olympic Games for South Africa and its role as the headline sponsor of TEAM SA, framing the trip as a matter of national pride.
**FAQ Section**
**Q: Why is Bidvest Group seeking reimbursement for the Olympic trip?**
A: Bidvest Group is requesting reimbursement for its chairman and two non-executive directors’ trip to the Paris Olympics, citing its sponsorship of the South African Sports Federation and Olympic Committee as justification.
