Pick n Pay CEO secures R56million stake as shares vest, now the value hinges on a turnaround

Two million of Pick n Pay CEO Sean Summers’ performance-based shares have vested, giving him R56 million stake in the company.

However, that value was based on the company’s share price at the time the stock – which Summers has to retain – vested.

On October 31, they were worth R28.30, Pick n Pay said in a recent statement to shareholders.

By mid-afternoon today, the shares were trading at R27,89 – 0.85% down on the day.

Pick n Pay’s stock is down 35.7% over the past five years.

Overall, Summers is entitled to four million shares tied to the retailer’s turnaround.

The vested shares will be retained by Summers in line with executive minimum shareholding rules.

The awards were part of a plan approved in May 2024 to align leadership incentives with Pick n Pay’s recovery.

Vesting was linked to both qualitative and quantitative targets critical to the company’s long-term growth.

Summers, who came out of retirement in 2023 at the request of the Ackerman family, has overseen a dramatic transformation at the loss-making entity.

He implemented a new leadership and operational structure, strengthened accountability, and improved regional decision-making.

Under Summers’ leadership, core supermarket performance has improved, like-for-like sales are recovering, and customer service has been boosted.

As part of the turnaround, Summers reset the store portfolio, closing 25 loss-making stores, converting others to Boxer or franchise models, and working with landlords to optimise locations.

The company has also invested heavily in fresh produce, own-brand lines, and customer service training for more than 28 000 staff.

Pick n Pay is investing R2.2 billion this year to revamp key stores, expand Boxer and Pick n Pay Clothing, and enhance the customer experience.

While still loss-making, the retailer has sharply narrowed its losses, helped by stronger trading and lower interest costs following a R12.5 billion recapitalisation.

The board said the share vesting marks a milestone in the turnaround plan, reflecting the successful delivery of structural and leadership targets that underpin the next phase of Pick n Pay’s recovery.

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