Cape Town - The sharp surge in the Naspers N share price [JSE:NPN] since 2008 means that CEO Koos Bekker is in line to secure a remuneration package valued at about R680m for each of the five years from 2008 to end financial 2013, making him one of the top paid executives in the country, Business Report
reported on Monday.
Bekker is holding R6bn worth of Naspers N shares, according to the group’s recently released annual report. Some 7.8 million Naspers N shares are held directly by Bekker and 4.7 million are held indirectly, the report said.
The directly held shares were awarded to Bekker in terms of his five-year contract with the company. In terms of the contract Bekker does not receive any salary, bonus, car scheme, medical or pension contributions from the company.
In lieu of remuneration, he was awarded 11.7 million shares, which vest in three annual tranches of 3.9 million shares in years three, four and five.
According to the report, the 11.7 million shares were allocated at the price ruling at the beginning of his five-year contract in 2008, which is approximately R150. Each time the 3.9 million tranche of shares is received by Bekker, he is required to pay an amount to cover inflation since 2008.
In early trade on Monday Naspers' shares were down 1.91% at R460.85.
Bekker was first appointed as chief executive in 1997 and is on his third five-year contract.
Under his reign Naspers has expanded its scope of business broadly to include media, Pay-TV and internet assets (Tencent in China and Russia's Mail.ru).
The company's latest results show that internet revenue grew substantially by 59% to R19.2bn, while trading profit increased by 9% to R3.8bn.
Pay-TV revenue rose 15% with an increase in the subscriber base of 648 000. The subscriber base is now 5.6m.
Print media revenue grew by 15% to R12.1bn, largely due to more printing contracts for the commercial print business Paarl Media. Naspers also saw a 10% increase in revenue from the Brazilian-based Abril.
*Fin24 is a Naspers publication.
Fin24 on Facebook