PSG's Mouton takes 70% pay cut

Cape Town - Greed is the foremost reason for the financial crisis in which the world finds itself, declared Jannie Mouton, executive chairperson of the PSG Group Limited, at the group's annual general meeting.

In the financial year to end-February Mouton himself accepted a cut of more than 70% in his total remuneration package.

"Outrageous financial violations and greed created the incredible market volatility," he observed. People have taken irresponsible risks with borrowed capital.

"Even in South Africa consumers were encouraged to take on debt."

He referred to the 100%-plus home loans made available to clients in recent years. The banks' drive to grow their mortgage books led to the offering of injudicious credit. Sound business principles had been ignored in the process.

In light of the poor economic conditions and the company's performance Mouton has for the second successive year declined a salary increase. Last year, when Chris Otto, a founder member of PSG, was still a director, both he and Mouton took salary cuts in exchange for shares.

Neither has the company paid senior management discretionary bonuses for the past year because of the conditions. Mouton believes in setting an example with regard to salaries and bonuses. He reckons the group's success outweighs personal reward.

The annual report shows Mouton's total remuneration as 76% down to R1.7m. Otto's is 66% down at R1.4m. At the AGM PSG approved a new management share-incentive scheme. The previous scheme no longer applies because of the poor performance of the company's share price.

- Sake24.com

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