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