South African businessman set for massive R1.2 billion payout

·21 Jun 2016

South African businessman and current SABMiller CEO Alan Clark stands to gain R1.2 billion when the company’s merger with global brewery ABInBev is approved.

When the merger is completed Clark will be able to cash out his shares and share options in the company which he has amassed over 26 years.

This amounts to £33 million from his long-term shares, with an additional £22 million from incentive scheme options as well as severance pay. At current exchange rates, this equates to R1.2 billion.

The ABInBev-SABMiller merger is close to being completed. The deal has been cleared in China and the US, and is sitting with the Competition Tribunal in South Africa.

The South African Competition Commission has recommended that the deal be approved, with conditions.

The details of Clark’s share options is contained in the SABMiller annual report: as at 10 June 2016, he has just under 342,000 shares in the company, with 1.16 million share options available. Clark earned 56,185 shares in the company in 2016.

In the five years ended March 2016, SABMiller’s share price increased by 92%.

For the 2016 financial year, Clark’s total pay was down 17% to £5.87 million (R128 million) from £7.07 million (R154 million) in 2016. Fixed pay, however, was up to £1.76 million (R38 million) from £1.53 million (R33 million) the year prior.

Clark is one of the highest paid CEOs in South Africa, largely thanks to his earnings being paid in foreign currency.

Other high-paid executives include the likes of Old Mutual CEO Bruce Hemphill who earned R104 million in the latest financial year reporting, and Richemont’s co-chief executives who shared more than R300 million in 2016.