SPAR rocked by boardroom shake-up as top leaders step down

SPAR Group chairman Mike Bosman and deputy chair Shirley Zinn have resigned from the retailer’s board with immediate effect, in a leadership shake-up that comes as the company continues its turnaround strategy.

SPAR informed shareholders of the developments on Monday, 17 August, the same day the resignations became effective.

The retailer said Bosman and Zinn had separately concluded that stepping down was “the right decision for them and in the best interest of the company”.

The departures come after the pair reportedly faced sustained personal attacks, hostility and, at times, threats from some current and former SPAR retailers and former employees.

In a joint statement, Bosman and Zinn said they accepted that disagreement and criticism were part of serving on the board of a listed company, but believed the situation had crossed a line.

Bosman oversaw governance overhaul

Bosman was appointed chairman in December 2022, during an exceptionally difficult period for SPAR that included serious governance matters previously disclosed to shareholders.

Following the retirement of CEO Brett Botten in January 2023, Bosman also served as executive chairman until October that year to provide leadership continuity.

SPAR credited him with strengthening the group’s governance, risk and control environment, simplifying its portfolio and restoring operational continuity.

The company also praised his engagement with shareholders and investors, describing his approach as measured, ethical and accountable during a challenging period.

“Throughout his tenure, Mr Bosman engaged openly with shareholders and made himself consistently available to them,” SPAR said.

Zinn’s role in remuneration reforms

Zinn joined the SPAR board as an independent non-executive director in February 2023 and was appointed deputy chair in June that year.

As chair of the Remuneration Committee, she played a central role in strengthening remuneration governance.

Among the measures introduced under her leadership were a malus and clawback policy for executive management and revised minimum shareholding requirements aimed at better aligning executives with shareholder interests and market practice.

Zinn also served on the Nominations and Social, Ethics and Sustainability committees, where SPAR said she contributed to board renewal and promoted transformation, ethical conduct and inclusion.

The board thanked both directors for their “dedication, professionalism, and the meaningful legacy of their service”.

Koyana appointed interim chairman

Lwazi Koyana, an independent non-executive director and chair of SPAR’s Risk Committee, has been appointed interim chairman with effect from 17 August.

His appointment will remain in place while the Nominations Committee conducts a formal process to identify a permanent successor.

SPAR also plans to strengthen its board following a skills assessment, with additional non-executive directors expected to bring expertise in areas including retail and independent retail operations.

Turnaround strategy remains unchanged

Despite the sudden board changes, SPAR has sought to reassure shareholders that its business strategy remains on track.

The board reaffirmed its “full and unqualified support” for Group CEO Reeza Isaacs, Group CFO Megan Pydigadu and the executive team.

“The group’s turnaround strategy and current guidance remain unaffected by these changes,” SPAR said.

The leadership changes therefore come at a crucial stage for the retailer, which continues to focus on improving retailer profitability, strengthening operations and rebuilding confidence across its business.

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