The mooted major shake-up at Old Mutual (OML) will see two separate companies floated in both London and Johannesburg. The South Africa-based insurer said one will consist of its wealth management business and will probably be formed by a demerger, while the second will be created through the launch of a new South African holding company, to hold its stake in Nedbank and its emerging markets operations.
Management said shareholders in the newly created South African company would be given shares in Nedbank, while the company itself would also retain a minority interest through its ownership of Old Mutual Life Assurance. The London office is also being wound down and the equivalent of 15 per cent of full-time staff have been cut as part of the separation.
Shareholders also voted in favour of the revised remuneration policy for directors, coupled with a new long-term incentive plan. This is despite criticism from some investors earlier this month over plans to award chief executive Bruce Hemphill a payout of 1,000 per cent of base salary over the three years until the group's target separation deadline at the end of 2018.
