Johannesburg - The Public Investment Corporation, Africa’s biggest fund manager, increased the pay of its chief executive officer by more than one fourth in his final year as it beat its main client’s returns benchmark by 0.21 of a percentage point.
Elias Masilela, who resigned in May, was paid 6.1 million rand including a one-time goodwill sum of 3.2 million rand, for the 12 months ended in March, according to the Pretoria-based PIC’s annual report published on its website this month.
Masilela was also paid the previous year’s short-term incentives, which amounted to 2.4 million rand.
In fiscal 2013 he received 4.8 million rand in total pay.
In the year ended March, the Government Employees Pension Fund, the PIC’s largest client and Africa’s biggest pension fund, received a total return of 14.77 percent, excluding offshore investments.
That compares with the benchmark set by the fund of 14.56 percent, Dan Matjila, the PIC’s chief investment officer, wrote in the annual report.
While the PIC outperformed on equities, money markets and unlisted property, it underperformed on capital markets, listed property and its Isibaya fund, which was set up to promote black investment, the report shows.
Government worker pensions make up 90 percent of the funds managed by the PIC.
Matjila said in August the PIC’s emphasis on developing South Africa’s power generation, roads, banks, communications and education will boost returns.
About 80 percent of its assets under management are invested in companies traded on Johannesburg’s stock exchange.
The PIC’s assets under management in the year ended March rose 14 percent to 1.6 trillion rand and profit climbed 61 percent to 208.9 million rand, according to the annual report.
Matjila was paid 9.6 million rand, an increase of 47 percent from the previous year, and received incentive payouts totaling 5.1 million rand. - Bloomberg News