I don’t think he is resident here and he is paid by an offshore entity? What investors want at the end of the day is to pay a fair price for a management team that creates value, in the process causing the share price to rise. We suggest it would be much better for Allan Gray to stick inside its circle of competence and, especially, to look in its own back yard. newTweetLink.id = "tweetLink"; }, false); The original publication can be viewed here. The stock is up 46 percent this year, the best performer on the FTSE/JSE Africa Top40 Index. What value has he, personally, created for NPN shareholders? In this case should the bulk of management incentives not be linked to actual realisations of investments?”. The result was that in 2018 changes were to made to the remuneration structure and to the way this was communicated in order to demonstrate more clearly the link between Naspers’s strategy, performance and its remuneration philosophy. THE BEST IN TECH. }); I’m sure nobody would have taken this job for less, like half a billion, say. Duncan McLeod is the editor of TechCentral. This accounts for 41% of the incentive. What shareholders think remains to be seen. Buckling to those short-term trading instincts would have been hugely wealth destructive for shareholders. Seems that you mainly just have to watch the Tencent share price. Those days are long gone. What is fair and reasonable in a company with a market capitalisation of R1.5-trillion is not necessarily the same as in a company half the size. (Bloomberg) – Naspers Ltd. shareholder Allan Gray Ltd. plans to vote against the remuneration policy of Africa’s biggest company because it isn’t aligned to the performance of the media and internet business outside a stake in Chinese giant Tencent Holdings Ltd. Naspers paid Chief Executive Officer Bob van Dijk $2.2 million in the year through March, an increase of 32 percent, and awarded him $10.4 million in long-term share options. if (document.selection.createRange) { How this will look in the coming year is laid out below. imageBtnPrev: "https://www.moneyweb.co.za/wp-content/themes/moneyweb-domination/images/bg_direction_nav.png", Basil (Vasili) Sgourdos Financial director and executive director. var oldTweetLink = document.getElementById("tweetLink"); Follows numerous complaints Nova’s chairman filed with the Press Ombud. almost unheard of expression of disgust at what was viewed as excessive and unwarranted incentives. The group’s remuneration report for the 2019 financial year shows the CEO received a total of $12.9m in remuneration. pay-for-performance approach and create an even stronger alignment between shareholder outcomes and executive pay,” says O’Toole. “This makes one question the quality of the core headline earnings. “While we have increased our disclosure this year compared to previous years based on earlier shareholder feedback, there is always room for further improvement, which the remuneration committee will carefully consider before the publication of our next integrated report.”. jQuery(document).ready(function () { Why the JSE is walking backwards compared with offshore markets, SA stocks fall as virus cases surge and US stimulus deal elusive, Naspers says FY earnings to more than double due to investment gains, Mid-term budget policy statement highlights 2020, Freedom of testation: don’t take this liberty for granted, Webinar recap: Making sense of the mid-term budget. However, during the year, he realised a gross gain from exercising Naspers N share options of R26 million and a further $14.9 million (R207.5 million) from the Flipkart share appreciation plan. Naspers Group is making its CEO a very rich man. His short-term incentives rose from $1.06 million to $1.11 million, while remuneration under the LTI plan rose from $9.64 million to $10.37 million (fair-value estimate). The new bunch post Bekker Pacak era are portfolio watchers, mainly watching their personal wealth grow disproportionately to what they are worth as managers as Tencent sweeps them along.