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Naspers CEO in R1.9bn pay, options bonanza

Naspers has made several changes to its remuneration policy in 2019.

Naspers Group is making its CEO a very rich man. Bob van Dijk received almost R1.9 billion in salary, incentives, and vested share options and shares appreciation rights in the year to March 2019, a regulatory filing published on Friday shows.

He received the equivalent of about R180 million in base pay, pension and incentives in the 2019 financial year. In addition, more than 290 000 Naspers N share options became vested to Van Dijk with a release value of R955.4 million. About $56.1 million (R781.1 million at the time of writing) worth of share-appreciation rights (SARs) also vested, for a total of more than R1.7 billion.

Read: Naspers says FY earnings to more than double due to investment gains

Of course, that’s not money in the bank until he exercises those options and SARs. 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.

The group’s remuneration report for the 2019 financial year shows Van Dijk received a total of US$12.9 million in remuneration, including $10.4 million in long-term incentives (LTIs). The LTIs are calculated at fair value based on the estimated value of the option on grant date — the actual value accruing to him will depend on the “real value created over the term of the option”.

Van Dijk’s base salary amounted to $1.26 million, down from $1.33 million, though the decline was the result in the depreciation of the US dollar relative to the euro — he is paid in euros and received a 10% salary increase.

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).

CFO remuneration

Chief financial officer Basil Sgourdos saw his remuneration leap from $3.53 million to $7.48 million on the back of a big jump in short- and long-term incentives received. Under the LTI plan, he received $5.46 million (fair-value estimate), up from $1.95 in the 2018 financial year.

Naspers has made several changes to its remuneration policy in 2019, including a minimum shareholding requirement for the CEO of 10 times annual salary, which Van Dijk met in both the 2018 and 2019 financial years.

It has also improved disclosure, with a clearer link between strategy, performance, remuneration design and remuneration outcomes. For short-term incentives, this includes more information on performance goals and level of achievements.

To avoid shareholder dilution under the LTI plan, Naspers has implemented a share purchase programme. The annual cost of this in the 2019 financial year was $78 million, up from $22 million in 2018.

Naspers chairman Koos Bekker received $575 000 (R8 million) in director’s fees, up from $549 000 in 2018.

— © 2019 NewsCentral Media

This article was published with the permission of TechCentral. The original publication can be viewed here.

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I’m sure nobody would have taken this job for less, like half a billion, say.

I’d certainly turn it down for that. Especially as it seems to tough.

Seems that you mainly just have to watch the Tencent share price.

Would that be taxable income in SA? I don’t think he is resident here and he is paid by an offshore entity? Either the Dutch or South African thank TenCent // unless the structures are held via a post box in a tax haven. One hopes it is a fireproof post box, as its only job is to keep the share certificate safe.

I get it that these guys must have “some skin in the game” and that relative to others he is not being overly remunerated.

However, like Navigator I just cannot see the value add from this individual next others.

Also these incentives can lead to individual priorities being prioritised versus shareholder priorities as is the case with so many other scandals of the recent past.

When someone also receives such large incentives I think that they start believing that due to them the Company is doing so well. In the case of such a large company this company could be led by rotation and do just as well.

What value has he, personally, created for NPN shareholders?

Groen

To be fair, tne tactical and strategic operations of TenCent are, contrary to popular belief, run from an office in Babalyonstoren via an AI uplink in a dutch autonomous territory tax shelter that beams 845,000 instructions per second to China. Bob’s salary per second is therefore less than the minimum wage in SA. Easy PR 101

Frankly disgusting. We all want to do well but do the shareholders of Naspers deserve to be almost R2 billion poorer because some swanky MBA watched Tencent go big? The very, very dark face of capitalism this and I’m a hardcore capitalist!

The “old” Naspers senior guys ran a business and did it well as they grew Multichoice, tried 9and failed) with M-Web, but found some gems to invest in. Those days are long gone. 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.

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