Old Mutual CEO scores massive R32 million payday – thanks to a big performance bonus

 ·15 Apr 2024

Thanks to a strong performance, the Old Mutual executive earned a collective R157 million in 2023, with the CEO Iain Williamson a sizeable R32 million after a nice R13.2 million bonus.

In its financial results for the year ended 31 December 2023 (FY2023), the group highlighted its profitable top-line growth and strong earnings delivered in 2023.

Despite a challenging operating environment, characterised by high inflation, elevated interest rates and muted economic growth in South Africa, the group saw sales growth of 17% in its key life segments, with it growing market share profitability in its key markets.

Net client outflows of R7,510 million improved by 40% from the prior year and were primarily driven by good inflows in its life business.

Looking at the numbers, the group’s profit after tax improved from R5.6 billion in FY2022 to R7.6 billion in FY2023, while headline earnings improved from R5.8 billion to R7.4 billion.

With the jump in profits, the group upped its total dividend by 7% from 76 cents per share in FY2022 to 81 cents in FY2023.

Profit After Tax (Rm)5 6517 633+35%
Headline Earnings (Rm)5 8547 380+26%
Basic earnings per share (cents)115.5158.4+28%
Headline earnings per share (cents)129.2165.5+37%
Total dividend (cents)7681+7%

CEO pay

According to Old Mutual’s Remuneration Report 2023, Group CEO Iain Williamson saw his single-figure total remuneration increase by 46% from R22.07 million in 2022 to R32.32 million in 2023.

Group CEO Iain Williamson

This comprised a total guaranteed pay (TGP) of R10.36 million, a short-term performance bonus (cash and differed into shares) of R13.21 million, and a vested interest (LTI) of R8.3 million – with R459,000 paid out in dividends from qualifying shares.

This works out to approximately R88,564 per day in 2023.

Group CFO Casper Troskie and Group COO Zureida Ebrahim saw their pay increase by 24% and 20% to R16.9 million and R12.0 million, respectively.

Notably, Prabashini Moodley, Managing Director of Old Mutual Corporates, saw her single-figure total remuneration increase by 45% from R9.70 million in FY22 to R14.1 million in FY23.

Additionally, Clarence Nethengwe, Managing Director of Mass and Foundation Cluster, recorded a 43% increase compared to last year, jumping from R11.25 million to R16.1 million in 2023

Many of the increases were linked to the vesting of the long-term incentives, which all of the executives were not awarded in 2023 because “the 2020 LTI award did not achieve any of the performance conditions and therefore has a nil vesting,” the report said.

The table below shows the nine executives’ pay for 2023 and how much it works out to per day.

ExecPos.2023 remunerationPer day
Iain WilliamsonCEOR32.3 millionR88 564
Casper TroskieCFOR16.9 millionR46 230
Zureida EbrahimCOOR12.0 million R32 995
Clarence NethengweMD R16.1 million R44 233
Kerrin LandMD R13.8 millionR37 937
Khaya GobodoMD R21.0 millionR57 564
Prabashini MoodleyMD R14.1 millionR38 521
Garth NapierMD R15.1 millionR41 463
Clement ChinakaMD R15.6 millionR42 808
Total R157 millionR430 315

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