{"id":759553,"date":"2024-03-13T06:57:06","date_gmt":"2024-03-13T04:57:06","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=759553"},"modified":"2024-03-13T07:35:21","modified_gmt":"2024-03-13T05:35:21","slug":"jobs-bloodbath-in-south-africa-while-execs-rake-in-millions","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/759553\/jobs-bloodbath-in-south-africa-while-execs-rake-in-millions\/","title":{"rendered":"Jobs bloodbath in South Africa – while execs rake in millions"},"content":{"rendered":"\n

Thousands of mining jobs in South Africa have been lost or are at risk, but executives in these companies continue to earn millions. <\/p>\n\n\n\n

Commodity prices, especially Platinum Group Metals (PGMS), have seen a widespread decline following a post-covid boom. <\/p>\n\n\n\n

The price of PGMS has dropped substantially amid destocking from the auto industry and weaker-than-expected demand from China. <\/p>\n\n\n\n

PGMs are mainly used in catalytic converters in internal combustion engines to reduce their emissions. However, with the rise of electric cars, the need for reduced emissions from a fuel-powered car has lessened. <\/p>\n\n\n\n

With a drop in these commodities’ value, major mining companies have been hit financially. <\/p>\n\n\n\n

Anglo American Platinum (Amplats) said its profit dropped from R49.2 billion in 2022 to R13 billion last year. <\/p>\n\n\n\n

Amid this challenge, the group said it would undergo a section 189A process, with a potential 3,700 employees (17% of its workforce) affected by the cuts. <\/p>\n\n\n\n

Despite the significant potential job cuts, Amplats is still set to pay shareholders more than R6 billion in dividends. <\/p>\n\n\n\n

In addition, several executives in the group saw their single-figure remuneration increase for the 2023 financial year, with the company spending R425,679 a day on its eleven senior executives throughout the year. <\/p>\n\n\n\n

Executive <\/strong><\/td>Position<\/strong><\/td>FY22<\/strong><\/td>FY23<\/strong><\/td><\/tr>
Craig Miller*<\/td>CEO and former CFO<\/td>R22 947 314<\/td>R25 846 999<\/mark><\/td><\/tr>
Hilton Ingram<\/td>Executive Head: Marketing, PGMs and AA<\/td>R26 420 332<\/td>R23 031 276<\/mark><\/td><\/tr>
Natascha Viljoen*<\/td>Former CEO<\/td>R39 825 464<\/td>R15 233 806<\/mark><\/td><\/tr>
Riaan Blignaut**<\/td>COO<\/td>R12 932 282<\/td>R15 371 334<\/mark><\/td><\/tr>
Prakashim Moodliar<\/td>Executive Head: Projects<\/td>R14 075 957<\/td>R14 598 384<\/mark><\/td><\/tr>
Yvonne Mfolo<\/td>Executive Head: Corporate Affairs<\/td>R12 112 251<\/td>R13 071 989<\/mark><\/td><\/tr>
Virginia Tyobeka<\/td>Executive Head: Human Resources<\/td>R8 914 699<\/td>R10 404 577<\/mark><\/td><\/tr>
Wade Bickley**<\/td>Executive Head: Mining Technical<\/td>–<\/td>R14 306 082<\/td><\/tr>
Sicelo Ntuli**<\/td>Executive Head of Shee and AR<\/td>–<\/td>R11 613 523<\/td><\/tr>
Agit Singh**<\/td>Executive Head: Processing Technical<\/td>–<\/td>R9 635 204<\/td><\/tr>
Sayurie Naidoo**<\/td>Acting CFO<\/td>–<\/td>R2 259 590<\/td><\/tr><\/tbody><\/table><\/div>
*Miller replaced Viljoen as CEO in October 2023 | ** Assumed current role during 2023 <\/figcaption><\/figure>\n\n\n\n

Moving away from theoretical job cuts, Sibanye Stillwater also recently announced that 2,600 workers<\/a> were axed by the group. <\/p>\n\n\n\n

\u201cWhile the decision to close or restructure operations is never taken lightly, the S189 consultation process encouragingly achieved the necessary requirement of addressing loss-making operations and ensuring the sustainability of our SA PGM operations and the benefits and value they bring to multiple stakeholders,” said Sibanye CEO Neal Froneman. <\/p>\n\n\n\n

Froneman’s pay has often been a point of contention. The CEO earned a whopping R300 million in the 2021 financial year\u2014a large part of which was long-term share incentives awarded in 2018. However, his salary dropped the following year to a more “respectable” R189 million. <\/p>\n\n\n\n

Sibanye recently reported an R37.9 billion loss after taking an impairment against its US palladium mine. <\/p>\n\n\n\n

The share price has also dropped from over R70 two years ago to roughly R20 today.<\/p>\n\n\n

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Sibanye Stillwater Share Price<\/figcaption><\/figure><\/div>\n\n\n

However, Froneman was relatively unaffected by the change in share price after exercising a put option. <\/p>\n\n\n\n

A put option is a contract that gives the option buyer the right, but not the obligation, to sell a specified number of shares at a predetermined price within a stipulated time frame. <\/p>\n\n\n\n

The predetermined price at which the put option buyer can sell the underlying security is called the strike price. <\/p>\n\n\n\n

On Tuesday, 5 March, when the share price was just over R18.00, Froneman exercised his put option at a strike price of R66.24.<\/p>\n\n\n\n

This pocketed the CEO R96.38 million. <\/p>\n\n\n

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Sibanye Stillwater CEO Neal Froneman<\/figcaption><\/figure><\/div>\n\n\n

PGMs under pressure<\/strong><\/p>\n\n\n\n

Although these figures make for tough reading in a country with the largest income inequality in the world<\/a>, PGM job cuts are somewhat inevitable. <\/p>\n\n\n\n

Coronation, which does not hold PGM shares in its portfolio, recently predicted a tough couple of years going forward for PGMs. <\/p>\n\n\n\n

Due to the higher levels of battery electric vehicle (BEV) manufacturing in the coming years, the PGM market is expected to experience large surpluses in the future. <\/p>\n\n\n\n

Amplats is working with Sasol and BMW to bring green-hydrogen-powered car to South Africa, with PGMs seen as essential in the production, distribution and consumption of green hydrogen. <\/p>\n\n\n\n

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New hydrogen-powered BMW coming to South Africa<\/a><\/blockquote>