Altech boss to forgo bonus

Cape Town - Craig Venter, the CEO of JSE-listed ICT group Allied Technologies [JSE:ALT] (Altech), has said he will forego his bonus for the 2012/13 financial year.

The decision was welcomed by the company's board.

“The board appreciates Mr Venter’s decision as it clearly demonstrates that he continues to place the interests of all stakeholders above short-term considerations,” said Moss Leoka, chairperson of Altech's board.

Altech recently announced a realignment of its interests to stave off losses from its East Africa operations. 

The East Africa operations were housed within a separate legal entity that had autonomy in terms of how the business was managed. However, Venter dismissed the suggestion that accountability should lie elsewhere and said that “the buck stops with me”.

The realignment comes at a time when new strategic partnerships are also being forged to put the company on a growth path.

“While these decisions have resulted in some short-term financial pain for shareholders, the board is pleased to see that the CEO has demonstrated faith in the future of the business, aligning his interests with the long-term interests of stakeholders by taking a short-term financial setback,” said Leoka.

Venter also received a pay freeze in the past 12 months of the previous financial year.

However, Leoka said Altech recognises the importance of maintaining scarce intellectual capital to remain competitive and as such, the company will take cognisance of this when structuring compensation for Venter’s team, who have worked tirelessly to keep Altech’s reputation as a world class ICT group.

“On behalf of the Altech board, I would like to reiterate the board’s confidence in Mr Venter. We are certain that we will see benefits from the strategic realignment of the business to maximise shareholder value, which was spearheaded by Mr Venter,” said Leoka.