{"id":769081,"date":"2024-04-23T17:00:00","date_gmt":"2024-04-23T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=769081"},"modified":"2024-04-23T15:07:41","modified_gmt":"2024-04-23T13:07:41","slug":"capitec-ceo-scores-massive-r65-million-payday","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/769081\/capitec-ceo-scores-massive-r65-million-payday\/","title":{"rendered":"Capitec CEO scores massive R65 million payday"},"content":{"rendered":"\n

Capitec\u2019s annual remuneration report for 2024 was released on 23 April 2024 \u2013 revealing how much the bank\u2019s top execs earned over the last financial year.<\/p>\n\n\n\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\n\n\n

Headline earnings were up 16% to R10.6 billion from R9.7 billion the year before. Net interest income grew by 13% to R14.9 billion.<\/p>\n\n\n\n

However, the net credit impairment charge on gross loans and advances increased by 37% to R8.4 billion (2023: R6.1 billion).<\/p>\n\n\n\n

Like many other banks in South Africa, Capitec saw an annualised increase in its credit loss rate from 8.0% in FY23 to 10.1% in FY24.<\/p>\n\n\n\n

The board approved a final gross dividend of 3,345 cents per ordinary share (2023: 2,800 cents), bringing the total dividend for the 2024 financial year to 4,875 cents per share (2023: 4,200 cents).<\/p>\n\n\n\n

Capitec also noted it was able to grow its active client base to 22.0 million (2023: 19.9 million). The active client base comprised 36% of South Africa\u2019s total population (FY23:33%)<\/p>\n\n\n\n

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

According to Capitec\u2019s single-figure report, CEO Gerrie Fourie\u2019s pay amounted to R65.74 million for 2024\u2014a 5.9% increase from the R62.09 million he received in 2023.<\/p>\n\n\n\n

This comprises his total guaranteed pay (TGP) \u2013 including benefits \u2013 of R17.50 million and a short-term cash incentive (STI) of R5.87 million. <\/p>\n\n\n\n

Fourie’s total remuneration is over five times that of the group’s second-highest paid \u2013 CFO Grant Hardy.<\/p>\n\n\n\n

Hardy took home R12.53 million in 2024. However, this gap between the two is due to Fourie’s extensive LTIs, while Hardy is within the 5-year window period after appointment to the CFO position.<\/p>\n\n\n\n

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\n\n\n

Fourie’s long-term incentive (including vested awards) amounted to a notable R42.74 million, while Hardy was awarded only R912,000.<\/p>\n\n\n\n

Fourie\u2019s salary equates to him earning around R180,109 a day.<\/p>\n\n\n

\n
\"\"<\/figure><\/div>\n\n\n

Of Capitec\u2019s top four executives, Nkosana Samuel Mashiya took home the \u2018smallest\u2019 amount, R393,000.<\/p>\n\n\n\n

However, Capitec noted that Mashiya received no STI due to his resignation effective 7 May 2023.<\/p>\n\n\n\n

Combined, the three executives received a total of R78.67 million in salaries.<\/p>\n\n\n\n

Based on Capitec\u2019s reported numbers, the group spent R7.17 billion on staff costs in 2023 for its 15,747 employees (including salaries, bonuses, and benefits). This translates to around R455,324 per employee.<\/p>\n\n\n\n

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

Employee<\/strong><\/td>Total Remuneration<\/strong><\/td>Average per day<\/strong><\/td><\/tr>
GM Fourie<\/td>R65.74 million<\/td>R180 109<\/td><\/tr>
GR Hardy<\/td>R12.53 million<\/td>R34 329<\/td><\/tr>
NS Mashiya<\/td>R393 000<\/td>R1 076<\/td><\/tr>
Capitec average<\/em><\/td>R455 324<\/em><\/td>R1 247<\/em><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n\n\n\n

Read: Capitec slowly opening the taps \u2013 but there\u2019s a catch<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

This is the paycheck of the CEO of Capitec \u2013 South Africa’s biggest bank by customer numbers.<\/p>\n","protected":false},"author":10,"featured_media":769012,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[1798,853],"class_list":["post-769081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-capitec","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/769081","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=769081"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/769081\/revisions"}],"predecessor-version":[{"id":769142,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/769081\/revisions\/769142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/769012"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=769081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=769081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=769081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}