PIC slams for­mer African Bank CEO’s R2.1m salary

CityPress - - Business - – Bloomberg

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.

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