OLD MUTUAL chief executive Peter Moyo’s total remuneration for 2018 increased by more than 48 percent to R50.57 million.
   African News Agency (ANA)
OLD MUTUAL chief executive Peter Moyo’s total remuneration for 2018 increased by more than 48 percent to R50.57 million.
 African News Agency (ANA)

JSE listing boosts executives’ pay

By Edward West Time of article published Apr 1, 2019

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CAPE TOWN – One can be forgiven for questioning who benefited the most from Old Mutual’s listing on the JSE and the unbundling of Nedbank last year, when one looks at the remuneration report that was released on Friday.

Chief executive Peter Moyo’s total remuneration for 2018 increased by more than 48 percent to R50.57 million from the R34.08m he received in 2017. His total pay for the year included a guaranteed remuneration component, short- and long-term incentives, an Old Mutual Managed Separation Plan, dividends and “distributions” from Nedbank and Quilter.

Fellow directors Clarence Nethengwe’s total remuneration increased by 159 percent to R16.61m for 2018, Karabo Morule’s went up by 174 percent to R19.42m, Iain Williamson’s increased by 156 percent to R27.44m, Dave Macready’s remuneration rose by 159 percent to R39.27m, while Clement Chinaka’s went up 130.3 percent to R18.15m.

According to the remuneration report, Moyo’s personal targets and achievements for which he was rewarded included “delivering the successful listing of Old Mutual, determining medium-term strategy and targets, delivering eight strategic priorities to improve competitiveness, “cost efficiency leadership”, “leading responsible business efforts” and embedding through the organisation “key” outcomes in 2018, including delivery of good sales, with five of the six medium-term targets delivered.

He also “delivered” R750m of recurring cost savings, out of a target of saving of R1 billion in 2018, the report said. Chairperson Trevor Manuel remarked in the results that the listing of Old Mutual Limited on the JSE on June 26 2018 “was a truly momentous occasion” that had marked the physical homecoming of a company deeply rooted in Africa”.

“Exciting opportunities lie ahead for us as an independently listed business and we look forward to delivering sustainable profit growth and returns for our shareholders, and making positive contributions to the societies in which we operate.”

In that year, admittedly a tough year for companies that invest their clients’ funds in equity and other markets, Old Mutual’s assets under management fell 3 percent and its return on net asset fell to 18.6 percent vs 22.9 percent in 2017.

Adjusted headline earnings fell 11 percent to R11.5bn.

Old Mutual’s share price since listing has also not performed very well - on Friday it was trading at R21.24, more than 25percent lower than the R28.51 it traded at on June 27. The share closed the day at R21.87.

At Old Mutual Life Assurance Company, which provides the group’s traditional core operations: life assurance, savings and retirement funds, pre-tax profit fell 30 percent to R7.9bn in 2018 in line with the decline in the dividend and the company would not have declared a profit were it not for taxable income reported for the year, versus tax paid the previous year.

Moyo said in Old Mutual Limited’s results that its results from operations (RFO) had fallen 4percent last year, “which is below our target”, due to movements in reserves, mortality and morbidity losses and the change of the functional currency in Zimbabwe,

He warned the RFO target for 2019 of nominal gross domestic product +2percent would become increasingly challenging to achieve due to negative RFO growth in 2018, but that the group remained confident of achieving its medium-term targets.


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