This South African insurance boss earns over R85,000 a day

Financial services group Sanlam has published its annual report, revealing how much the companies top executives were paid in 2018.

In March the insurer announced its operational results for the 12 months ended December 2018, which also included the acquisition of the remaining 53% stake in Saham Finances, the largest transaction in Sanlam’s 100-year history.

Results for 2018 included 14% growth in the value of new life insurance business (VNB) on a consistent economic basis and more than R2 billion in positive experience variances.

Key features of the 2018 annual results included:

  • Net result from financial services increased by 4% compared to the same period in 2017;
  • Net operating profit of R2.04 billion, up 14%;
  • Diluted headline earnings per share f 441.1 cents, down 8%;
  • Net value of new covered business up 8% to R2 billion (up 14% on a consistent economic basis);
  • Net fund inflows of R42 billion compared to R37 billion in 2017;
  • Adjusted Return on Group Equity Value per share of 19.4% exceeded the target of 13%; and
  • Dividend per share of 312 cents, up 8%.

Sanlam CEO Ian Kirk took home R31.05 million for the year, including a basic salary of R8.91 million, an annual bonus of R11 million, and long-term incentives valued at R10.93 million.

This works out to R85,000 a day.

Kirk was the highest paid executive on the team, followed by chief actuary and group risk officer, Anton Gildenhuys, who earned R19.09 million for the year.

In total, Sanlam’s executive committee was paid a combined R139.7 million for the year, averaging R17.5 million per person.

Kirk’s salary is 76 times larger than the average salary paid to employees in the period (R410,039 including short-term benefits), and around 128 times larger than the average salary in South Africa

Stats SA’s latest Quarterly Employment Survey, showed that the average employee in South Africa earned R20,190 a month, or R242,280 a a year.

The table below outlines what Sanlam’s executives earned, and how that translates to an average per day (365 days).

Employee Total Remuneration Average per day
I Kirk R30.05 million R85 100
A Gildenhuys R19.09 million R52 300
J Strydom R18.05 million R49 500
L Lambrechts R16.64 million R45 600
H Werth R16.18 million R44 300
R Roux R15.55 million R42 600
T Mvusi R12.08 million R33 100
J Ngulube R11.07 million R30 300
Sanlam average R410 039 R1 120
South Africa average R242 280 R650

Read: MTN’s boss earns R117,600 a day

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This South African insurance boss earns over R85,000 a day