Pick ‘n Pay, one of South Africa’s largest supermarket chains and partially controlled by the billionaire Ackerman family, has given CEO Sean Summers a considerable incentive in the form of shares to turn around the faltering shop.
Earlier this month, the business stated that it had issued him four million shares under its limited share plan. At the current price of R27 a share, these shares are worth around R108 million ($5.4 million).
These shares are subject to particular performance conditions that are critical to the resuscitation of Pick ‘n Pay’s main grocery operation. While these restrictions are not revealed, they will be outlined in the company’s next annual report. Shares will vest in three stages.
The first two million shares will vest on October 31, 2025, subject to the development of effective leadership and operational frameworks. An additional one million shares will vest on February 28, 2027, subject to CEO succession planning. The final 1 million shares will vest on February 28, 2027, based on financial performance criteria.
Summers has a 32-month term, and identifying a replacement is a primary priority during this time. This criterion is not only part of his performance shares, but it is also a crucial goal stated in the company’s most recent results. The corporation intends to reform its leadership and develop clear succession plans with experienced professionals.
Summers’ low remuneration package reflects his devotion. He received R10 million ($540,000) in the five months after Pieter Boone’s departure. Summers, unlike his predecessors, does not get retirement, medical, or other benefits, and he is technically older than the mandatory retirement age.
Despite his independent riches, Summers returned to Pick ‘n Pay at the Ackerman family’s request to turn the company around. It is unclear whether his remuneration would remain unchanged in the coming year.
In addition to Summers’ incentives, Pick ‘n Pay has launched an R4-billion ($216 million) rights offering. The terms provide a 32% discount to the share price on July 10, which was a smaller 5% discount when the initial plan was revealed. Absa, RMB, and Standard Bank have fully sponsored the rights issue.
If Pick ‘n Pay’s share price returns to its earlier levels of R50 or R60, Summers’ shares might be valued closer to R200 million ($10.8 million), tripling his motivation to shepherd the shop through a successful revival.
Pick ‘n Pay, founded in 1967, has a strong presence in Africa’s retail sector, with over 2,000 outlets in eight African countries. It is the nation’s second-largest retailer, trailing only Shoprite Holdings, which is owned in part by South African billionaire Christo Wiese.
