Pick n Pay CEO scores R25 million payday

Pick n Pay CEO Sean Summers received R24.9 million in the latest financial year, as the group is starting to see significant improvements in its financial results.

Summers, who returned to Pick n Pay in late 2023, saw his total remuneration reach R24.9 million for the year ended 2 March 2025.

The payout is exclusively made up of a R24.9 million base salary, with the CEO in his early 70s and not receiving any retirement and medical contributions nor short-term performance bonuses.

However, he did receive R40.2 million in long-term awards, which should pay out in the coming years.

Summers is a Pick n Pay stalwart, having worked for the company from 1974 to 2007 before re-joining the company in 2023.

He was named the managing director in 1996 and took over as CEO from founder Raymond Ackerman in 1999.

Given his reputation in the group, he was called back to save a sinking ship, with Pick n Pay suffering from its botched Ekuseni strategy.

Although Summers’ remuneration is well short of Shoprite CEO Peiter Engelbrecht’s recent R84 million in single-figure remuneration, he was offered a large performance-related package last year.

In May 2024, Pick n Pay’s remuneration committee awarded Summers 4,000,000 performance-based shares.

These shares were issued at a nil cost and may vest, subject to performance conditions met, over 32 months.

2 million of these shares vest later this year and are based on the implementation of effective leadership and operational structures.

Another one million are based on the CEO succession plan, while another million are based on financial-performance targets.

Based on a share price of R27 in 2024, these performance-based shares would have a value of R108 million.

Summers’ contract was recently extended by an extra year to 2028, ensuring stability during a significant strategic transformation.

Other executive and board member pay

The group’s recent financial statements also showed that outgoing chairman Gareth Ackerman scored R14.3 million during the financial year.

Ackerman, whose father founded the company, will be succeeded by former RMB CEO James Formby as chairman.

As he was already a board member, Formby earned close to R1.9 million during the 2025 financial year.

Fellow Ackermans who served on the board included Jonathon and Suzanee, who earned R621,000 and R770,000 in total remuneration, respectively.

Regarding the executive directors, the group also included CFO Larna Olivier’s remuneration, which reached R9.1 million following a R2.9 million short-term performance bonus.

Overall, the group’s 11 non-executive directors and two executive directors earned over R48 million in total remuneration throughout the year.

This remuneration comes despite the overall group declaring a R736 million loss for the financial year, as the group’s core grocery business continues to struggle.

However, the loss was a massive improvement from the R3.3 billion seen only a year prior. The group said that the improvement marks a turning point, as it executes the first leg of its financial recovery.

During 2024, the group completed a two-twp recapitalision plan. This included a R4 billion rights offer and the IPO of Boxer, which raised R8.5 billion for Pick n Pay.

With the recapitalisation strengthening its balance sheet, the group focuses on Pick n Pay’s further operational recovery, while Boxer continues its growth strategy.

Several crucial milestones were achieved in FY25 for the Pick n Pay business, which included closing or converting 40 loss-making SA supermarkets. 

“The path back to break-even, profitability and ultimately long-term sustainable success is clear and will be executed in a considered and methodical manner,” said the group.

“However, it will take longer than initially envisaged, as the chosen strategy is to build retail muscle memory for long-term success.”