Capitec CEO, Gerrie Fourie emerged with an executive pay package of R20.1 million during the 2016/17 financial year after deriving significant gains from the long term incentive chapter of the pay.
Fourie commanded a basic salary of R9.8 million plus R3.7 million in short term incentives (STI). And he enjoyed a R6.5 million in long term incentives (LTI) made of exercised options and share appreciation rights. The 2016/17 LTI gain were lower than those of the previous year where Fourie realised R16.4 million from share appreciation rights and R6.2 million from options bringing his total package for that year to R35.5 million.
Fourie’s colleagues are not far behind with chief financial officer Andre du Plessis getting a pay package of R10.4 million – made of a basic salary of R7.6 million and R2.8 million in STI. Du Plessis did not exercise his LTI rights during the year under review.
Nkosana Mashiya, the former deputy registrar of banks at the South African Reserve Bank who became Capitec executive director in November 2015, earned R5.2 million which is made of a basic of R3.7 million plus R1.4 million in STI. Mashiya also registered no LTI gains.
These high executive pay numbers are naturally troubling when seen against the South African poverty and inequality. Capitec will justify these high numbers with the argument that they are matched by high growth performance.
A new comer into the sophisticated South African banking market, Capitec has grown magnificently to challenge the big retail banking players, Standard Bank, Absa, FNB and Nedbank. It is now competing with Nedbank for the fourth spot with its growing network of 796 branches.
|CAPITEC 2015/16 Exec Remuneration (Rands in Million)|
|AP du Plessis||7,6||2,9||0,0||10,4||10,5||-1|
|Total Exec Dir|
Capitec also rewards its non executive directors handsomely. The 2016/17 annual report shows the chairperson, Riaan Stassen, got R1 million in director fees Chris Adriaan Otto got R620 million. The rest of the directors fees are reflected in the table below.
|Capitec 2016 Non Exec Remuneration (Rand in Million)|
|JP van der Merwe||0,00||0,0||0,00||0,00||0,029||–|
|MS du P le Roux||0,589||0,0||0,00||0,589||1,2||-51|
|Total Non Exec Dir||4,4||0,000||0,00||4.4||4,5||-3|