Mark Lamberti forfeits salary

2014-10-19 15:00

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Mark Lamberti, the CEO of Imperial and former head of Transaction Capital and Massmart, has taken a bold step on executive pay by forfeiting his salary.

The Imperial boss, who has been in his new position since March, has opted not to be paid a salary or get any other benefits until at least June 2015, according to the vehicle dealer and logistics company’s annual report.

Instead, at his suggestion, the company will take an amount equal to his remuneration and make it available for the university education of the “direct descendants” of employees who earn less than R600?000 a year and have been working for the group for more than five years.

His predecessor would have earned a fixed salary of R7.4?million for 2014, which Lamberti told City Press would “at least” be the size of the scholarship fund. As compensation, Lamberti participated in the group’s deferred bonus plan, which saw him buying 60?787 shares in the company, which will be matched in three years. He will also receive conditional share plan rights that are 1.5 times the annual bonus, provided he meets certain targets.

If these targets are fully met, Lamberti can expect to pocket R12.8?million for the year to June 2015, but the shares will only vest two years later.

In the meantime, he would live off income from various investments, including 450?000 Imperial shares.

Lamberti said a CEO’s compensation should be aligned with the long-term interests of the company and its stakeholders.

“Unless the board decides otherwise, my intention is that this approach to my compensation will continue for as long as I am the CEO,” he said.

A fellow executive applauded his move this week.

“I admire him for doing this,” said Mohammed Akoojee, Imperial’s head of strategy and investor relations.

“It is a great gesture.”

Johann Rupert

Johann Rupert

Johann Rupert, whose family invests heavily in Remgro and Richemont, receives no pay from Remgro, the diversified investment company he chairs.

He also chairs luxury goods group Richemont, which paid him €669?304 (R9.5?million) in the year to March. The previous year, he was paid more than €3?million.

His earnings from Richemont are donated to charity.

Koos Bekker

Koos Bekker

Former Naspers CEO Koos Bekker preferred to be paid in shares instead of cash. He earned no salary during his years as CEO.

In 2013, he received 3.9?million shares – the final instalment of a five-year contract he entered into in 2008. This brought his total holding – held directly and through his family trust and other vehicles – to 16.4?million shares. On Friday these were worth R19.7?billion.

Ketso Gordhan

Ketso Gordhan

Ketso Gordhan, the former boss of PPC, took a pay cut of R1?million. He earned R8.4?million in financial 2013, and said he would take a R1?million cut on the guaranteed portion of his package in 2014. He was joined by a group of managers in favour of semiskilled employees.

This lifted these employees’ monthly pay by R875, while PPC’s minimum wage for full-time permanent employees hit R6?500.

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