JOHANNESBURG – Pick n Pay chief executive Richard Brasher received a bumper R32 million pay package in the 2019 financial year including his fixed salary and bonuses, as the food retailer made gains in the year under review.
In its annual financial statements released, the food retailer said that the Brasher’s pay included an R11.35 million fixed remuneration and R20.64 million bonus and gratuity fee.
It said Pick n Pay chief financial officer Bakar Jakoet had received a R20m package during the period, and including an R5.27 million and R15.21 million in bonuses and gratuity.
The group said Brasher had successfully implemented the strategy to reset the long term earnings trajectory of the group.
Damon Buss, an equity analyst at Electus Fund Managers, said Brasher's remuneration package was incentivised by binary options on 1 million shares, originally due to vest in November 2017, which would pay out if the Pick n Pay share price exceeded certain hurdles.
Buss also said that prior to the original November 2017 vesting date, the share price was below the lowest hurdle of R68.03 and hence Brasher's options would have expired at R0.
"Hence, the Pick n Pay board granted Brasher an extension of 12 months on the vesting date without any changes to the hurdle rate required. The board argued the short term cost of the strategic actions to fix the long term earnings trajectory had unfairly prejudiced Brasher's chance to earn the incentive
"At the vesting date in November 2018, Pick n Pay's share price was above the lowest hurdle and hence the binary options vested," Buss said.
Brasher's remuneration comes as the retailer managed to regain market share from its competitors Shoprite and Checkers during the year ended in March.
The company declared a total annual dividend of 231 cents per share, up 22.4 percent, which amounted to more than R1 billion for shareholders. The robust results were driven primarily by strong performance in South Africa, which comprises the Pick n Pay and Boxer brands, while there were "operating challenges" outside local borders.
Pick n Pay had posted muted turn over growth of 5.3 percent to R81.7bn as it grew revenue from a growing owned and franchise estate, serving more customers with stronger offers. Pick n Pay shares rose 1.93 percent on the JSE yesterday to close at R72.