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.
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).
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
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