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Naspers CEO bags R276m in annual remuneration

‘Our reward systems must help us attract and retain the best talent around the world in a fair and responsible way.’
Image: Graeme Williams/Bloomberg

Bob van Dijk, CEO of Naspers and its European-listed spin-off Prosus, received remuneration of $15.98-million, or R276-million, in the past year, according to the Naspers annual report published on Tuesday.

Van Dijk’s remuneration was made up as follows:

  • $1.36-million (R23.5-million) in base salary;
  • $1.18-million (R20.4-million) in short-term incentives;
  • $13.28-million (R229.4-million) in long-term incentives;
  • $89 000 (R1.5-million) in pension; and
  • $62 000 (R1.1-million) in medical, life and disability insurance.

Naspers (and Prosus) chief financial officer Basil Sgourdos, meanwhile, took home total remuneration of $9.16-million (R158.3-million), the annual report shows.

Naspers, which has been criticised in the past by investors over its remuneration practices, said in the report that it believes in “pay for performance” and that it is “comfortable with bigger rewards for those that make the highest contribution”.

Remuneration, it said, must be aligned with shareholder outcomes and must incentivise the achievement of strategic, operational and financial objectives in both the short and longer term.

It said its reward package elements are broadly the same, regardless of seniority. “Our reward systems must help us attract and retain the best talent around the world in a fair and responsible way.”

Meanwhile, Naspers said that due to “ongoing uncertainty” created by the Covid-19 pandemic, there will be no performance-related salary increase for the executive directors in the current financial year (FY2021).


“We do not think it is appropriate to increase the cost base at this point in time,” it said. “The pay review for all other employees has been postponed until further notice.”

It said the impact of the pandemic on Naspers is “not clear at this time”.

“This creates significant uncertainty, which may mean that we need to adjust the objectives for the short-term incentives plan as such effect becomes clearer during the course of FY2021. In addition, the committee may determine that it is not appropriate for the full (or any) bonus to be paid for FY2021.

“Given the longer-term focus of the company, and the prudent approach on pay and bonuses, it will still be appropriate to issue long-term incentive awards in the coming year, though the grant date will be postponed until August or early September, in line with the LTI awards to the broader employee population this year.”

Duncan McLeod is Editor of TechCentral

This article was first published on TechCentral here

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Give him 2.5m dollars and the rest to the share holders.

What exactly are you doing?

Tencent is doing almost all the work.

I don’t really know what he is doing and I don’t care too much. First Oom Koos, and now uncle Bobby is ensuring that I have a secure retirement by giving me an opportunity to invest in a world class operation in which the price has been climbing ever since I bought into it in fit of absence of mind in 2005. Go Bobby, go.

Koos and Bob are actually reducing the returns that you would have made at this point. When their investments other than Tencent start to pay off then they will be adding value to you. But I guess in the big picture you stumbled onto a great share and your returns are so good it doesn’t matter. Lucky you! And maybe they will buy into the next Tencent/Facebook/? along the way and make your ride extra special!

So let me understand this better.
He was paid, by his employer, R276 000 000 for working one year.
He does not own the company, the shareholders do.
Let’s assume that he is a really diligent and hard-working chap and he works 6 days per week, 8 hrs per day, which is a very generous assumption.
That means that he worked 52 weeks x 6 days = 312 days. (This is not counting any leave he might have taken)
So he was paid R884 615 per day, every working day. That’s nearly a Million Rand per day. That’s R110 576 per hour for each 8 hour day.
What did he achieve for the company that’s so valuable?
Without Tencent, Naspers would be running at a loss and Bob Van Dyk had no personal involvement in the original purchase of the ongoing Tencent windfall.
This is iniquitous, especially in the current Covid environment where so many people are struggling to survive financially.
PS – I haven’t bothered to convert these numbers into dollar terms – this payment is just so wrong in any currency.

Nah its not wrong to receive obscene amounts of cash like this. You are paid for what you are responsible for and not what you actually do.

He is responsible for the happiness of shareholders. That’s all that matters.

This thing of “so many people are struggling financially” has got nothing to do with the guy. He is a private citizen. Do not misplace society’s, and guvmend’s, responsibilities on the “poor” guy.

He must go out, now that the restaurants are open, and have dinner that costs 1 Nasper’s share per head.

Many shareholders are not happy and van Dyk is not responsible for the success of Tencent. Not at all.

These guys should get “ordinary” remuneration (OK, so USD2m maybe) until such time as the other investments make it big. Then they can have BILLIONS. But to pay them this much for sitting on Tencent shares while they invest shareholder funds is not really that clever. I don’t believe they need this kind of pay because they are so unique – they have not demonstrated shareholder returns of any kind yet although they may (or may not) still do that. Pay them when their investment decisions pay off.

It is what it is, but I had to ask what the chances are of Bob ever earning this type of dough running his own business!? And I’m not that sure myself of the significance of the question but it does highlight the ridiculousness of the hierarchical structure in an environment of such scale! It costs shareholders 5 -7 million rand for him to have a bad bout of Flu, perhaps 4 CEO’s at 10 mil each is a more efficient option!!?? Geez, they could have a nightshift and weekend shift going:)

Remuneration, it said, must be aligned with shareholder outcomes and must incentivise the achievement of strategic, operational and financial objectives in both the short and longer term.

I love capitalism. I am not being sarcastic. I agree with this statement 200%. A CEO of some senior managers do not have a knockoff time. The business lives in their heads and lives. He has no weekend, no holidays and the phone is always ringing.

Swim in your ka-ching dude. I envy you.

The problem is that the remuneration of this size is way to big in the short term to be of real long term incentive. He need never be poor on one or two years earnings, where is the long term incentive!?

The website layout on has been exactly the same since 2012.
I want NASPERS to do well, but with Kalahari out of the way it seems that they have lost interest in Ecommerce in SA, they know that they are unchallenged.
Takeaway deliveries (MRDelivery and Delivery Hero) can be a big business, but it does not drive innovation and physical products being produced. It only creates headaches.

As they are mostly online and offers services and advertising, one has to wonder if they have not cornered themselves.
Anyone can create a great website idea these days with a very small number of staff, thus NASPERS is now a technology holding company, rather than an innovative company actively making cool stuff.

As stated earlier by some commentators, rather buy Tencent at a third of the price of NASPERS. At least they are making products out of ideas.
I hope I am wrong, but I cannot help to feel alarmed.

How much is enough ? When is it too much ? I see people every day who have nothing to eat. Bob gee jou kop ‘n skud my maat.

I don’t care if he makes some obscene amount of money, all I want is good, reasonable returns on my investments over time. I also want a person who makes R 270+mil a year to be held personally responsible for making bad decisions for the company. I do not want to have bad decisions affect my share price and my dividends. If you are paying someone this amount of money you better hold him and his small empire he is amassing personally liable for losses and not simply throw it onto the shareholders while he gets rich as heck. Think about the whole Steinhoff scandal. Former CEO is gone with the wind while shareholders are left in the dust. I just really hope in the long run NASPERS does not turn out to be a Steinhoff in the making…

I don’t understand the business model , the structure and the multiple listings.

This is a red flag , another Steinhoff. I’ll pass

We live in a world where persons that have never started anything or developed anything or risked anything in their entire lives are paid obscene amounts to run 20y old startup companies that report increasing operating losses.

Sure, that makes a lot of sense. Reminds me of 2006 when the world’s highest income earner was a hedge fund manager.



So by your logic , only people that start business should be afforded the luxury of executive remuneration.

That’s interesting , I personally know a few entrepreneurs that are frankly idiots that stumbled onto a good idea , had nothing else going for them so they took a chance and made millions.

Don’t confuse luck science

Bob doesn’t own Naspers – he is an employee. The shareholders own the company.

Playing into the hands of the ant-business brigade.

This guy as good as he may be is going to price himself out of a job, but he should have a stash that can keep him in Klippies and boerewors for a while.

A quarter of a bil for watching 10Cent cook in China, the odd game of golf with the analysts, a few jolly lunches with Koos and the boys, pretty good gig I tell you!

End of comments.





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