JOHANNESBURG - MASSMART chief executive Mitchell Slape received a R24 million remuneration package during the year ended December 2020, the group said in its 2020 integrated annual report released on Friday.
Slape’s salary included a R7.11m in guaranteed package, R6.8m in other benefits, R4.2m in other bonuses and R6.05m in short-term incentives.
Slape, who succeeded Guy Hayward as chief executive in September 2019, had received a total pay package of R6.5m in 2019.
Slape earned his salary in US dollars, although the amounts were stated in rands, given that he was a US citizen on expatriate assignment in South Africa, Massmart, owner of retail brands Makro, Game and Builders Warehouse said on Friday.
Massmart told Business Report that it was standard practice for expatriates to earn in their home currencies. “It is consistent with industry practice both in local and developing markets that Mitch Slape is paid in the currency of his country of origin,” said the group.
Slape, who has served parent company Walmart in Mexico, India and Japan, has made several sweeping changes to get Massmart in shape, including the sale of its 23 DionWired stores.
Slape also announced the disposal of Cambridge Food, Rhino, The Fruitspot and the Massfresh meat processing facility as well the review of the group’s store portfolio outside the Southern African Development Community.
Slape also told investors that the group was investing in e-commerce growth and was prioritising the merchandise categories of bulk food, liquor, general merchandise and DIY and the customer segments in which it is market leaders. Massmart said Slape’s short-term incentive had been aligned to the group’s annual incentive plan framework and was linked to the company’s performance.
It said Slape had demonstrated his commitment to the business through buying 300 000 Massmart shares in his personal capacity during 2020.
The group also said his appointment remained subject to a valid work authorisation in South Africa.
“Because Mitch Slape has US nationality he, like other foreign nationals working in South Africa, is required to have a valid work visa.
“Depending on the type of visa, it must be renewed from time-to-time. The comment in the annual report is simply acknowledging that situation. Mitch Slape’s current work permit is valid,” said the group.
Massmart said chief financial officer Mohammed Abdool-Samad had received a R4.7m salary, R6.1m in bonuses and performance related payments, R772 000 in other benefits and R529 000 retirement benefits bringing his total pay to more than R12m. In 2020 Massmart paid R7.7 billion in salaries, wages, and benefits from R8bn a year earlier.
The group estimated that lost sales of R6.1bn which translated to an estimated lost margin of about R1.2bn due to the impact of Covid-19 lockdown restrictions after comparing sales during the lockdown and sales during the same period last year.
Massmart recorded a trading profit for the year of R1.17bn, representing an increase of 5.5 percent from the R1.11bn trading profit it reported in 2019.
BUSINESS REPORT