{"id":681201,"date":"2023-04-18T17:08:43","date_gmt":"2023-04-18T15:08:43","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=681201"},"modified":"2023-04-19T07:48:42","modified_gmt":"2023-04-19T05:48:42","slug":"capitec-ceo-scores-a-massive-payday","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/681201\/capitec-ceo-scores-a-massive-payday\/","title":{"rendered":"Capitec CEO scores a massive payday"},"content":{"rendered":"

Capitec\u2019s annual remuneration report for 2023 was released on 18 April 2023 \u2013 revealing how much the bank\u2019s top execs earned over the last financial year.<\/p>\n

In its financial results for the full year ending 28 February 2023, Capitec showed<\/a> strong growth despite the challenging environment within South Africa.<\/p>\n

Headline earnings were up 15% to R9.7 billion from R8.4 billion the year before.<\/p>\n

Income from operations grew 12% to R30.3 billion for the period, with net income up only marginally (2%) to R24 billion. The main contributor to the reduction in income came from credit impairments, which grew 80% to R6.3 billion.<\/p>\n

The group declared a final dividend of 2,800 cents, taking the total dividend for the year to 4,200 \u2013 also up 15% in line with the group\u2019s growth.<\/p>\n

The bank also saw a significant jump in its client base, recording 20.1 million customers at the end of February 2023. This means that around one-third of the South African population (2022 est: 60.6 million) now banks with Capitec in some form.<\/p>\n

Capitec said that the growth of its credit impairment charge needs to be understood in the context of the last four years, where things went from \u2018normal\u2019 (2020) to heavily disrupted by the pandemic (2021), to some recovery (2022), to again being disrupted by the Russian war in Ukraine (2023).<\/p>\n

The group\u2019s CET1 ratio of 34% (2022: 35%) and CAR ratio of 34% (2022: 36%) are well above the group\u2019s board-approved regulatory requirements.<\/p>\n

\u201cAs such, Capitec continues to be well-capitalised and positioned for future growth opportunities,\u201d it said.<\/p>\n

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

According to Capitec\u2019s single-figure report, CEO Gerrie Fourie\u2019s pay amounted to R62.09 million for 2023 \u2013 a 33% decrease from the R92.77 million he received in 2022.<\/p>\n

This comprises his total guaranteed pay (TGP) \u2013 including benefits \u2013 of R16.92 million and a short-term cash incentive (STI) of R5.42 million. The group CEO also got a long-term incentive (including vested awards) of R39.74 million.<\/p>\n

Fourie’s salary equates to him earning around R170,109 a day.<\/p>\n

The group\u2019s CFO, Andre du Plessis, took home R31.05 million for the year \u2013 a 48.5% decrease from the R60.35 million he received in 2022.<\/p>\n

This is mainly due to Du Plessis receiving no STI due to his retirement, effective 30 June 2022.<\/p>\n

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

Of Capitec\u2019s top four executives, Grant Hardy took home the \u2018smallest\u2019 amount among the executives at R6.97 million.<\/p>\n

Capitec noted that Hardy was appointed to the CFO position on 1 July 2022 and, as such, his STI and TGP are pro-rated by the number of months within the financial year that he was in the CFO position.<\/p>\n

Combined,\u00a0the four executives received a total of R114.59 million in salaries<\/strong> \u2013 averaging R28.64 million per exec.<\/p>\n

Based on Capitec\u2019s reported numbers, the group spent R6.2 billion on staff costs in 2023 for its 15,451 employees (including salaries and benefits). This translates to around R401,269 per employee.<\/p>\n

The average executive earned 71 times more than the average employee, with the CEO earning 154 times more.<\/p>\n

The table below outlines what Capitec\u2019s top executives earned and how that translates per day.<\/p>\n

\n
\n\n\n\n\n\n\n\n
Employee<\/strong><\/td>\nTotal Remuneration<\/strong><\/td>\nAverage per day<\/strong><\/td>\n<\/tr>\n
GM Fourie<\/td>\nR62.09 million<\/td>\nR170 109<\/td>\n<\/tr>\n
AP du Plessis<\/td>\nR31.05 million<\/td>\nR85 068<\/td>\n<\/tr>\n
NS Mashiya<\/td>\nR14.47 million<\/td>\nR39 643<\/td>\n<\/tr>\n
GR Hardy<\/td>\nR6.97 million<\/td>\nR19 095<\/td>\n<\/tr>\n
Capitec average<\/em><\/td>\nR401 269<\/em><\/td>\nR1 099<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n

Read: Absa\u2019s top executives\u2019 massive payday \u2013 earning a collective R207 million<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

This is how much Capitec executives earned in 2022.<\/p>\n","protected":false},"author":10,"featured_media":681205,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[1798,26],"class_list":["post-681201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-capitec","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/681201","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=681201"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/681201\/revisions"}],"predecessor-version":[{"id":681529,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/681201\/revisions\/681529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/681205"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=681201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=681201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=681201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}