Business

Top South African CEO gets his pay cut by R72,000 a day for poor performance

Malcolm Libera

 ·31 Jul 2026

The CEO of The Foschini Group (TFG), Anthony Thunström, saw his annual remuneration fall by more than R26 million in 2026.

This comes after the company scrapped all of his performance-based incentives following a difficult year for the business.

TFG’s 2026 Remuneration Report shows that Thunström’s single-figure remuneration declined from R44.8 million in the 2025 financial year to R18.5 million in 2026.

The R26.27 million reduction works out to roughly R72,054 less in pay per day over the 2026 financial year.

The sharp decline was due to the complete removal of his short-term cash bonus and long-term share incentives after TFG’s financial performance deteriorated significantly.

His guaranteed pay actually increased by 5% during the year, rising from R16.54 million to R17.37 million.

TFG said this increase was approved by its Remuneration Committee (Remco) after considering “market positioning against retail comparator groups, internal equity considerations, and general salary benchmarks” across the company’s head office workforce.

However, all of his variable incentive pay, worth R27.15 million in the previous financial year, was reduced to zero.

During the 2025 financial year, TFG delivered solid results despite difficult trading conditions. Group revenue increased 4.1% to R62.6 billion, while retail turnover grew 3.6% to R58.3 billion.

Profit after tax rose 5.2%, earnings before interest and tax (EBIT) increased 4.4%, and headline earnings per share (HEPS) climbed 4.6% to 1,015.6 cents.

Shareholders also benefited from improved returns. The retailer expanded its gross margin, increased its total dividend by 15% to 390 cents per share, and saw its share price rise by 25% over the year.

Despite the positives, TFG described the 2026 financial year as “one of the more challenging trading environments TFG has navigated in recent years.”

The retailer faced weak global consumer demand, persistent inflation, high interest rates in Australia, and aggressive discounting in South Africa during the winter season.

Although group revenue increased 7.2% to R67.1 billion and retail turnover rose 7.1% to R62.4 billion, profitability came under severe pressure.

Remuneration committee explains executive pay cuts

TFG’s gross profit margin declined by 120 basis points to 48.2%, while operational EBIT fell 22.1% to R4.9 billion.

HEPS dropped 33.5% to 675.4 cents, and the company’s share price declined by 43% from March 2025. The total dividend paid to shareholders was also cut by 30.8% to 270 cents per share.

These results had a direct impact on executive incentives. Under TFG’s Single Incentive Plan, financial measures account for 70% of executives’ performance scorecards.

As the company’s earnings weakened, the formula-based performance outcome dropped sharply from 86.4% in 2025 to 38.3% in 2026.

The remuneration committee then applied what it described as the maximum allowable downward adjustment of 25% due to weaker financial results and a significant decline in shareholder returns.

Following discussions between the board and executive management, Thunström agreed to forego all incentive payments for the year.

Remco said this decision ensured remuneration outcomes remained “fair, directly aligned with shareholder experience, and consistent with the Group’s pay-for-performance principles.”

Despite the earnings setback, TFG highlighted several strategic achievements during the year.

Its Bash online marketplace surpassed R3.5 billion in turnover and became profitable two years earlier than planned, while e-commerce accounted for more than 10% of TFG Africa’s retail turnover.

The retailer also completed the rollout of its R1 billion Riverfields omnichannel distribution centre and reduced logistics costs through its in-house delivery network.

It also launched a R1 billion share buyback programme and accelerated plans to improve profitability by closing around 100 underperforming stores during the year, as part of a broader plan to rationalise approximately 300 outlets.

The table below shows Anthony Thunström’s total remuneration (FY 2025 vs. FY 2026)