{"id":240143,"date":"2018-04-24T09:32:15","date_gmt":"2018-04-24T07:32:15","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=240143"},"modified":"2018-04-24T09:32:15","modified_gmt":"2018-04-24T07:32:15","slug":"capitec-ceo-gerrie-fourie-scores-a-massive-r57-million-payday","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/240143\/capitec-ceo-gerrie-fourie-scores-a-massive-r57-million-payday\/","title":{"rendered":"Capitec CEO Gerrie Fourie scores a massive R57 million payday"},"content":{"rendered":"

Capitec has been one of the biggest growth and success stories in the South African banking sector – and chief executive Gerrie Fourie’s salary<\/a><\/strong> reflects this.<\/p>\n

In its most recent results, the bank reported an 18% rise in headline earnings to R4.5 billion for the year ended February 2018, while generating a return of 27% on its shareholders\u2019 equity.<\/p>\n

Diluted headline earnings per share increased 18% to R38.46, while the directors declared a final gross dividend of 945 cents per ordinary share, bringing the total dividends for the year to R14.70 per share.<\/p>\n

Net transaction fee income (non-lending) increased from R3.9 billion to R5.1 billion in 2018, and\u00a0now makes up 41% of total net income, due to an increase in transaction volumes. Income from operations climbed 13% to R17.8 billion, while operating costs increased by 17% to R6.4 billion.<\/p>\n

Notably, the group’s active clients rose 15% to 9.868 million, from 8.569 million before, while the group opened 30 new branches over the period, to 826.<\/p>\n

\n

Group CEO Gerrie Fourie received a R56.6 million payout, thanks mainly due to a long-term incentive (LTI), along with a 10% increase in his basic pay package.<\/p>\n

According to Capitec,\u00a0the group’s year-on-year growth in HEPS of 18% was above the 15% target, which translated to a short-term incentive (STI) payment of 36.7% of the approved total guaranteed packaged (TGP) for the 2018 financial year.<\/p>\n

For the LTI, the number was a split between the share options taken and the stock appreciation rights (SARs) vesting in the financial year.<\/p>\n

Fourie’s salary was made up of a R10.75 million guaranteed package, R240,000 in other benefits, a R4.05 million short-term bonus, and a long-term incentive payout of R41.6 million.<\/p>\n

Capitec CFO, Andre du Plessis was also rewarded for the group’s performance, with his complete remuneration package for the year amounting to R41.6 million – also thanks to a R30.2 million LTI payout.<\/p>\n

In comparison, Nedbank CEO Mike Brown<\/a><\/strong> took home a R38 million for the full year, while Absa CEO Maria Ramos<\/a><\/strong> received a R37 million salary. Standard Bank CEO Sim Tshabalala<\/strong> <\/a>earned R48.5 million.<\/p>\n

Executive directors<\/strong><\/p>\n

\"\"<\/a>Non-executive directors<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Long-term incentives<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Average salaries<\/strong><\/p>\n

In total, Capitec paid out R300.5 million to its strategic managers (12 managers), R240.3 million to senior management (102 managers) and R2.7 billion to other employees (13,219).<\/p>\n

These averages are laid out in the table below, including both fixed cash and variable remuneration.<\/p>\n

\n
\n\n\n\n\n\n\n
Group<\/th>\nTotal employees<\/th>\nTotal paid<\/th>\nAverage per employee<\/th>\n<\/tr>\n
Strategic management<\/td>\n12<\/td>\nR300 576 000<\/td>\nR25 048 000<\/td>\n<\/tr>\n
Senior managment<\/td>\n102<\/td>\nR240 337 000<\/td>\nR2 356 245<\/td>\n<\/tr>\n
Other employees<\/td>\n13 219<\/td>\nR2 701 168 000<\/td>\nR204 340<\/td>\n<\/tr>\n
Total<\/strong><\/td>\n13 333<\/strong><\/td>\nR3 242 081 000<\/strong><\/td>\nR243 162<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n

Read:\u00a0Does Ramaphosa deserve a R3.6 million salary?<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Capitec has been one of the biggest growth and success stories in the South African bank sector in the past year – and CEO Gerrie Fourie’s salary reflects this.<\/p>\n","protected":false},"author":10,"featured_media":240165,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[1798,26],"class_list":["post-240143","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-capitec","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/240143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=240143"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/240143\/revisions"}],"predecessor-version":[{"id":240195,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/240143\/revisions\/240195"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/240165"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=240143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=240143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=240143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}