Shoprite Holdings has faced criticism following the disclosure that its CEO, Pieter Engelbrecht, earned approximately R117.8 million in total remuneration during the 2026 financial year, a 35% increase from the previous year’s R87 million.
The controversy intensified after shareholders were asked to approve an additional long-term incentive package involving 525,000 performance shares valued at approximately R176 million. The award is linked to a six-year strategic plan and specific financial, organisational and leadership targets.
Engelbrecht’s remuneration included a R36.4 million Executive Super Stretch Incentive, awarded after the company achieved its performance targets over a three-year period.
The proposed additional incentive attracted opposition from major institutional investors and shareholder advisory organisations ISS and Glass Lewis, which questioned whether another substantial reward was justified.
Businessman and Shoprite director Christo Wiese defended the proposal, highlighting Engelbrecht’s contribution to the retailer’s growth and arguing that exceptional business leadership deserves appropriate recognition.
At Shoprite’s annual general meeting on 6 November 2026, shareholders approved the incentive plan, with 70.91% voting in favour and 29.09% against when ordinary and deferred shares were combined. Opposition among ordinary shareholders alone was considerably higher, at approximately 46%.
Shoprite pointed to its strong financial performance in defending its remuneration decisions. The retailer reported annual sales of R270.8 billion, an increase of 7.2%, while trading profit grew by 8.4% to R16.2 billion.
The decision has reignited debate about executive salaries, corporate governance and income inequality in South Africa, with questions being raised about whether multi-million-rand bonuses are justified despite concerns from ordinary shareholders.
With the incentive plan approved, attention will now turn to whether Engelbrecht delivers the long-term targets attached to the additional share award.
Main image: Daily Investor
