Jasco CEO scores R3.5m pay as group reports lower increases this year
Companies / 21 October 2019, 6:45pm / Sandile Mchunu
DURBAN – Jasco Electronics chief executive Mark Janse van Vuuren was paid a guaranteed R3.35 million this year, with the group stating in its annual report that increases were lower than in previous years as a result of challenging market and economic conditions in South Africa.
However, his total remuneration, including long-term share-based incentives of R76 274, increased to R3.42m for the year.
The group said the average increases were lower than in previous years and the average increase for permanent employees was below 4 percent, which was less than the 6 percent budgeted and lower than the industry average.
“For our employees governed by the Metal and Engineering Industries Bargaining Council, the average increase of 6.5percent was awarded in line with the council agreement,” the group said.
The 2019 executive remuneration excluded short-term incentives as the group said that during the year the group's earnings and profitability did not meet the expected level.
“Accordingly, no short-term performance-based incentives were paid to group executives.
"To qualify for short-term incentives, each individual business unit must meet certain minimum financial performance criteria to be considered for an incentive payment at the end of the financial year.
"Due to the current economic and market conditions, only two business units met the minimum criteria in financial year 2018 and qualified for incentives. During the year under review, two business units may qualify for incentives in financial year 2019,” the group said.
In the year to the end of June results released last week, the group reported a loss of R19.38m compared with a profit of R3.38m reported in 2018, hard hit by a number of once-off costs and impairments related to goodwill in Power & Renewables and the closure of the operations in East Africa and the Middle East.
Its revenue was flat at R1.14 billion and operating profit declined by 71.9 percent to R11.35m.
The group’s chief financial officer, Warren Prinsloo, took home a total remuneration of R3.68m, which consists of R3.34m guaranteed pay and R336 401 in long-term share-based incentives.
The executive director responsible for business development, Thapelo Petje, was paid a total package of R2.11m for the year, which includes a guaranteed pay of R2.07m and long-term share-based incentives of R39 001.
Samantha Samuels, who resigned as an executive director in July, was paid a salary of R1.63m.
The total pay for Jasco’s executive directors for 2019 was R10.84m, and the group paid its non-executive directors a total of R2.58m in fees.
The figure includes an amount of R503 533 paid to its chairperson, Dr Anna Mokgokong.
The group said non-executive directors were paid a fixed fee, which was determined by the extent of their participation in sub-committees.
Jasco shares closed unchanged at 20 cents on Friday.