PSG Konsult head honchos receive bumper increases
The two most senior executives at PSG Konsult enjoyed pay increases more than double the prevailing inflation rate in the company’s most recent financial year.
CEO Francois Gouws and CFO Mike Smith earned a combined R82.544m in the year to end-February, 14.43% higher than the previous year, according to the insurance and asset management group’s annual report published on Thursday. That compares with an average inflation rate of 7.06% over the review period.
Nevertheless, shareholders seem to have had no qualms with the exorbitant pay increases, with almost 94% of them voting in favour of the group’s remuneration policy at its last annual general meeting (AGM).
“Our 2023 remuneration policy was well received by shareholders and achieved a nonbinding advisory vote of 93.9% in its favour at the 2022 AGM, while the remuneration implementation report also received a vote of 93.9% in its favour,” PSG Konsult said in its integrated annual report.
Gouws raked in the most, with total remuneration of R60.881m, of which R5.887m constituted his base salary. A further R34.2m stemmed from bonuses and performancerelated payments. The R34.2m bonus was paid in cash in May 2023 due to Gouws having more than 10 years’ service with the group. He also received R85,000 in company contributions and R20.709m in longterm incentives.
Smith’s total pay was R21.663m — a base salary of R2.935m and R12.8m in bonuses and performance-related payments. He also received R63,000 in company contributions and R5.865m in long-term incentives.
Gouws’s package is 15.5% higher than a year earlier, while Smith’s increase was 11.6%. That was roughly in line with the annual increase in the group’s total employee bill in 2022 — R1.243bn, or 15.6% higher than the R1.075bn for the previous year. PSG Konsult’s 2023 employee remuneration bill will reach R1.319bn, according to the annual report.
The group said its “entrepreneurial remuneration model” is linked to the achievement of business performance to ensure executive remuneration is aligned with the best interests of shareholders.
“A substantial component of executive remuneration is variable in nature and therefore dependent on us delivering positive financial results,” the group said.
In April the Bellville-based group reported a 3% rise in earnings attributable to ordinary shareholders, which inched up to R950.77m for the year to endFebruary. Even so, PSG Konsult declared a final dividend of 25c a share, taking its full-year dividend to 36c, which is 13% higher than the previous year’s distribution.