Capitec CEO scores massive R65 million payday

 ·23 Apr 2024

Capitec’s annual remuneration report for 2024 was released on 23 April 2024 – revealing how much the bank’s top execs earned over the last financial year.

In its financial results for the full year ending 28 February 2023, Capitec showed strong growth despite the challenging environment within South Africa.

Headline earnings were up 16% to R10.6 billion from R9.7 billion the year before. Net interest income grew by 13% to R14.9 billion.

However, the net credit impairment charge on gross loans and advances increased by 37% to R8.4 billion (2023: R6.1 billion).

Like many other banks in South Africa, Capitec saw an annualised increase in its credit loss rate from 8.0% in FY23 to 10.1% in FY24.

The board approved a final gross dividend of 3,345 cents per ordinary share (2023: 2,800 cents), bringing the total dividend for the 2024 financial year to 4,875 cents per share (2023: 4,200 cents).

Capitec also noted it was able to grow its active client base to 22.0 million (2023: 19.9 million). The active client base comprised 36% of South Africa’s total population (FY23:33%)

Executive pay

According to Capitec’s single-figure report, CEO Gerrie Fourie’s pay amounted to R65.74 million for 2024—a 5.9% increase from the R62.09 million he received in 2023.

This comprises his total guaranteed pay (TGP) – including benefits – of R17.50 million and a short-term cash incentive (STI) of R5.87 million.

Fourie’s total remuneration is over five times that of the group’s second-highest paid – CFO Grant Hardy.

Hardy took home R12.53 million in 2024. However, this gap between the two is due to Fourie’s extensive LTIs, while Hardy is within the 5-year window period after appointment to the CFO position.

Hardy was appointed to the CFO position on 1 July 2022, and as such, his STI and TGP are pro-rated by the number of months within the financial year that he was in the CFO position.

Fourie’s long-term incentive (including vested awards) amounted to a notable R42.74 million, while Hardy was awarded only R912,000.

Fourie’s salary equates to him earning around R180,109 a day.

Of Capitec’s top four executives, Nkosana Samuel Mashiya took home the ‘smallest’ amount, R393,000.

However, Capitec noted that Mashiya received no STI due to his resignation effective 7 May 2023.

Combined, the three executives received a total of R78.67 million in salaries.

Based on Capitec’s reported numbers, the group spent R7.17 billion on staff costs in 2023 for its 15,747 employees (including salaries, bonuses, and benefits). This translates to around R455,324 per employee.

The table below outlines what Capitec’s top executives earned and how that translates per day.

EmployeeTotal RemunerationAverage per day
GM FourieR65.74 millionR180 109
GR HardyR12.53 millionR34 329
NS MashiyaR393 000R1 076
Capitec averageR455 324R1 247

Read: Capitec slowly opening the taps – but there’s a catch

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