PIC slams former African Bank CEO’s R2.1m salary
Africa’s biggest fund manager said it was not acceptable that compensation for Leon Kirkinis, the previous CEO of failed lender African Bank, rose year on year before he resigned.
The Public Investment Corporation (PIC) said “taking into consideration the fact that Kirkinis worked 10 months in the 2014 financial year, the PIC is of the view that he actually received a higher quantum of remuneration than in the previous financial year”.
The fund manager, which oversees about R1.4 trillion in assets, said “this is unacceptable, given that shareholder value was destroyed”.
The Pretoria-based PIC “will be taking up this matter with the curator” managing a rescue of the collapsed bank.
The PIC is African Bank Investment’s second-largest shareholder, with a stake of more than 13%, according to data compiled by Bloomberg.
Kirkinis (55) was paid R2.11 million in salary and benefits for the 10 months ended August 6 2014, according to annual financial statements recently published by African Bank, the unit of the company that continues to operate. In the previous year, his compensation totalled R2.18 million, the statements show.
The 2014 compensation was approved before the bank failed, the company said. Kirkinis received no severance package after the bank’s collapse and was paid until he resigned, African Bank explained.