{"id":821867,"date":"2025-04-23T15:30:00","date_gmt":"2025-04-23T13:30:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=821867"},"modified":"2025-04-23T15:12:13","modified_gmt":"2025-04-23T13:12:13","slug":"capitec-ceos-r105-million-farewell","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/821867\/capitec-ceos-r105-million-farewell\/","title":{"rendered":"Capitec CEO’s R105 million farewell"},"content":{"rendered":"\n

Outgoing Capitec CEO Gerrie Fourie received over R100 million in his single-figure remuneration package in the 2025 financial year as the bank’s earnings skyrocketed.<\/p>\n\n\n\n

Fourie, who has been Capitec\u2019s CEO for over a decade, saw his single-figure remuneration rise from R65.7 million in FY24 to R104.8 million in FY25. <\/p>\n\n\n\n

His pay package included R18.8 million in guaranteed pay, R16.9 million in short-term and R75 million in long-term incentives. <\/p>\n\n\n\n

His short-term and long-term incentives drove the jump, increasing from R5.9 million and R42.9 million in FY24, respectively. <\/p>\n\n\n\n

Capitec\u2019s CFO, Grant Hardy, also significantly increased his single-figure remuneration from R12.5 million to R20.7 million, driven by growth in his short-term and long-term incentives. <\/p>\n\n\n\n

As Hardy has only been in the role for three years, his long-term incentive balance is still in a build-up phase due to Capitec\u2019s 6-year tranche vesting approach to LTI. <\/p>\n\n\n\n

Fourie and Hardy\u2019s increased remuneration comes from a powerful performance by Capitec, which beat analysts\u2019 expectations. <\/p>\n\n\n\n

The group\u2019s headline earnings jumped by 30% to R13.7 billion, while the group\u2019s ROE also increased from 26% to 29%. <\/p>\n\n\n\n

Moreover, the credit impairment charge on loans and advances dropped by 6% despite a 12% growth in gross loans and advances. The group\u2019s credit loss ratio, excluding Avafin, thus dropped from 8.7% in FY24 to 6.9% in FY25.<\/p>\n\n\n\n

The jump in earnings metrics came despite a 30% increase in operating expenses for the group, which included AvaFin\u2019s operating expenses that were absent in 2024 and the increased employee incentives due to higher headline earnings. <\/p>\n\n\n\n

With the jump in headline earnings and ROE, Capitec\u2019s board declared a final gross dividend of 4,425 cents per ordinary share, bringing the total dividend to 6,510 cents. <\/p>\n\n\n\n

The annual dividend payout ratio was amended from 50% to 55% amid the higher ROE, returning more headline earnings to shareholders.  <\/p>\n\n\n

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Source: Capitec<\/figcaption><\/figure><\/div>\n\n\n

Management changes at Capitec<\/h2>\n\n\n
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The R105 million package will be Fourie\u2019s last for a full year, as he will retire from Capitec following the group\u2019s AGM in July. <\/p>\n\n\n\n

His remuneration for the 2026 financial year and post-retirement will be detailed in next year’s remuneration report. <\/p>\n\n\n\n

Fourie has been part of the executive management team for 25 years, 11 of which were as CEO. <\/p>\n\n\n\n

\u201cThe board is grateful to Gerrie for the incredible leadership role that he has played, and his entrenched legacy of a high-performance culture in the business will live on,\u201d said Capitec. <\/p>\n\n\n\n

\u201cAs Capitec has diversified over the past 4 years, Gerrie expanded the executive structure to include divisional executive teams responsible for Personal banking, Business banking, Insurance and Strategic initiatives.\u201d <\/p>\n\n\n\n

This change built a strong senior leadership team with expertise and experience. With Fourie\u2019s retirement, the question of succession in Capitec\u2019s executive team became a priority for the group. <\/p>\n\n\n\n

Thus, Graham Lee was identified as Fourie\u2019s replacement and will become Group CEO and a board member on 19 July 2025. <\/p>\n\n\n\n

Lee is the Executive responsible for Personal Banking. He has been a member of the group executive team since 2022 and joined Capitec in 2003.<\/p>\n\n\n\n

He has held several strategic positions in credit, technology and data, retail operations and the Retail Bank division at Capitec.  He is a Chartered Management Accountant and holds a BBusSci (Hons) and an MBA. <\/p>\n\n\n\n

Lee will be replaced by Basani Maluleke, who will take over as the Executive for Personal Banking and as a group EXCO member.<\/p>\n\n\n\n

Maluleke joined Capitec in 2021 and previously served as the CEO of Capitec\u2019s rival African Bank. She has been Divisional Executive for Operations at Capitec for four years. <\/p>\n\n\n\n

\u201cWith these two roles being filled with internal candidates, we are satisfied that our succession strategy is working,\u201d said Capitec. <\/p>\n\n\n\n

\u201cWe are also confident in the quality and strength of our internal succession pipeline and continue to emphasise growing our black management appointments as we expand.<\/p>\n","protected":false},"excerpt":{"rendered":"

Capitec CEO Gerrie Fourie has seen his single-figure remuneration skyrocket to R105 million following a strong performance by the bank. <\/p>\n","protected":false},"author":95,"featured_media":821902,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[4762,1798],"class_list":["post-821867","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-african-bank","tag-capitec"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821867","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\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=821867"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821867\/revisions"}],"predecessor-version":[{"id":821954,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/821867\/revisions\/821954"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/821902"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=821867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=821867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=821867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}