R20 million payday for Capitec CEO
Capitec CEO, Gerrie Fourie, has received a R20 million pay cheque after helping the firm post strong financial results over the past year.
Fourie’s pay includes a guaranteed salary of R9.83 million – up 16% from R8.49 million in 2015/16 – a short-term incentive bonus of R3.75 million, and a cash payout from long-term incentive schemes totalling R6.52 million.
CFO, Andre du Plessis earned a total pay package of R10.46 million for the year, while newly appointed head of risk, Nkosana Mashiya earned R5.26 million. Neither du Plessis nor Mashiya exercised any long-term incentive options.
According to Capitec, Fourie and other executives’ increases were the result of an exceptional performance delivered over the 2016/17 financial year.
The banking group noted that total executive remuneration came to R90 million, which represented 2.4% of the bank’s headline earnings for the period (R3.8 billion).
“(This) is deemed to be reasonable considering the value created for investors over the four-year period in comparison to the incremental total remuneration increase over the same period,” Capitec said.
In the 2015/16 financial year, the average salary per employee was R154,520 R1.75 billion paid to 11,335 employees) compared to the 2016/17 average of R164,786 (R2.13 billion paid to 12,956 employees) – representing a 6.6% increase, in line with CPI.
In late March, Capitec reported another bumper financial performance for the year ended February 2017, with headline earnings up 18%, and 1.3 million banking customers added over the period.
Capitec is comfortably the third largest bank in the country by customers, with 8.6 million banking customers, catching up to Absa, which boasts 8.8 million customers.
Standard Bank remains the biggest bank in South Africa with around 11.8 million customers, while FNB (7.7 million) and Nedbank (7.4 million) bringing up the last two positions among the country’s retail banks.
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