Old Mutual CEO paid R33m in 2012

Old Mutual CEO paid R33m in 2012

2013-04-05 11:11

Cape Town - Julian Roberts, the CEO of Old Mutual [JSE:OML], one of SA's largest insurers, received a total compensation of R33m in 2012, according to the company's annual report.

The London-based and JSE-listed company said Roberts received a salary of £870 000 (R21.1m), short-term incentives of £1.15m and benefits worth £341 000 for a total package of £2.36m (R33m).

Roberts' compensation increased 0.5% from £2.35m in 2011. He received £6.6m in shares after the company posted an 18% rise in profit to £1.6bn, narrowly beating analysts’ forecasts of £1.57bn.

"Basic salary increases for executive directors and for other members of the group executive committee effective in 2013 were below inflation and below average increases provided to other employees across the group,” Russell Edey, chairperson of the compensation committee, said in the annual report.

“Neither short-term nor long-term incentive percentages were increased for executive directors for 2013,” he said.

Old Mutual achieved its target to get rid of £1.5bn in debt and boost its return on equity to 15% by the end of 2012, Business Report said.

The company has set aside R5bn to fund expansion in fast-growing sub-Saharan Africa, saying it wanted to cash in on growing demand for insurance across the region as rapid economic growth, fuelled in part by the natural resources boom, increases consumer spending.

Old Mutual's shares were trading 0.68% higher to R27.56 on the JSE on Friday morning.

(Additional reporting: Reuters)

  • Felix Njewa Kankhukwa - 2013-04-05 11:21

    money isnt everything!

      Lucy Lu - 2013-04-05 11:30

      Player hater!

      Paige Mninawa - 2013-04-05 11:59

      say that to a hungry kid in Alex,Khayelitsha,Mdantsane..

      WILLIAM2012 - 2013-04-05 12:46

      Felix, you must be one of the FAT CAT'S or are you the driver of Zuma's gravy train????

  • UBhanqo Bobese Poltini - 2013-04-05 11:21

    He works hard that's why he deserves it.

      Timothy Crowley - 2013-04-05 11:30

      These days you need to work smart rather than hard to earn big!

      Peasant McPoor - 2013-04-05 11:32

      Lol- u seriously believe that??? I bet u ppl like single mothers working 2 jobs 2 survive, work harder than this guy! That type of money is not justified other than rutheless business.

      Danie Theron - 2013-04-05 11:39

      Hey Timothy - and how 'smart' do you work..? Perhaps you should think twice before 'smart'-@$$ walks into his own trap. Good call, UBhanqo, work hard first, then you will find you become smart enough to get more out of your HARD WORK.., most definitely not the other way around. I am sure people like Chris Gardner would support the notion.

      John Silver - 2013-04-05 11:54

      He isn't mining coal or curing cancer - just shovelling other peoples money. The world is nuts

      Ygivadamn - 2013-04-05 12:50

      This is nothing compared to R203million bonus Zuma received last year....and what did he do to deserve it? Well Done Julian. Executives are measured by performance and if he inspired a R16b profit for OM...i say he deserves it(just as long as the rewards are 'equitably' shared with employees as well) :-)

  • mfanah.radebe - 2013-04-05 11:24

    Yho!money says daddy to ORTHER people

      mark singh singh - 2013-04-05 12:01

      Can you translate this to English?

      marcus.vermaak - 2013-04-05 12:03

      Yes, they did do another Bond film. That is what you were asking?

  • Msandi Nkosi - 2013-04-05 11:32

    No wonder the people that invest with old mutual usually complain of very low returns.

      Ruan Smith - 2013-04-05 15:34

      ha ha get perspective mate!! Youre missing out on a world around you.

  • Lerato Mnizi - 2013-04-05 11:33

    Comes to about R92000.00 per day...

      jacques.walker.16 - 2013-04-05 11:40

      That works out to R 3 833 per Hour. I'm in the the wrong business,)

      Brian Tebogo Mogotsi - 2013-04-05 11:52

      It's like winning the lottery every month!

      Mangena Hluphekile - 2013-04-05 12:09

      thats true Lerato, actually its R92 410.96. Some are earning R400.00 per fortnight. But the African saying :Iminwe ayilingani - fingers are not of the same size.

      mstrato1 - 2013-04-05 12:22

      Actually its R 137,500 seen that there are only 20 working days in a month.

      KingPun - 2013-04-05 12:32

      @Mawande And thats an anual salary for most

      sandra.j.rennie - 2013-04-05 15:31

      Lerato Mnizi - He runs a big organisation and he does it well !

      @Thabo.Shaku - 2013-04-06 00:11

      One word: Obscene!

  • Mountain Runner - 2013-04-05 11:34

    Astute people manage their own wealth and don't leave this duty to institutions to skim off the lion's share.

      Khuliso Monica Mathisa - 2013-04-05 12:48

      I agree; you can have wealth creation by investing all on your own, there are many trading platforms; share trading, forex trading, unit trusts, bonds, hedge funds etc bt you need to be educated about investment assets. One’s earning needs to exceed his expenditure in order for him/her to invest the surplus, which truth be told is not the case for most in SA. So most opt to invest a 100 here and a 50 there due to lack of investment education. I think gov needs to add investment education to their school curricular; all that this investment companies do is to take ppl’s money and reinvest it for a higher return and give the ppl the left overs.

  • Karl Klopjag - 2013-04-05 11:35

    Obscene --- the very thing that will lead to the collapse of capitalism.

      konstabel.koekemoer - 2013-04-05 13:54

      True, having most of the worlds wealth in the hands of a tiny percentage of it's population is a threat to the global economy and stability. While I agree that a successful CEO should get paid very well, it is questionable whether it is necessary that the CEO gets paid one hundred times more than the average employee? But it is a very difficult issue to address as it is an international problem and cannot be resolved by individual companies or countries.

  • Kwinika Masango Bush - 2013-04-05 11:36

    That's extreme.......considering volatile economic atmosphere .......@greedy.

      Susan Paul - 2013-04-05 12:10

      Bush, would you say the same thing about JZ.

  • Sipho Simon Mogale - 2013-04-05 11:40

    Hard working man not expecting tenders, As long investers are benefiting also

      Amanda Ncapayi - 2013-04-05 12:33

      Me when i grow up i wanna be Julian Roberts

  • Eleanore Hill - 2013-04-05 11:43

    If our currency wasn't so weak, his salary wouldn't amount to 33 million.

  • Johannes - 2013-04-05 11:47

    Greed... It never stops..

  • Brian Tebogo Mogotsi - 2013-04-05 11:47

    Good for him!

  • Bongani Nsele - 2013-04-05 11:50

    some people accept this as normal....no wonder politicians all over the world join in the feeding frenzy

  • Ntloko Yamazizi - 2013-04-05 11:50

    SA parastatal are not doing too bad nhe as compare to old mutual.

  • Democrazy - 2013-04-05 11:52

    10 grand an hour - that's good money!

  • Michael Jackwood - 2013-04-05 11:53

    Its tough in financial services market, to have a CEO who can keep the company like Old Mutual competative and profitable, that CEO does not sleep while most of us are sleeping, let him earn what is due to him.

  • Monique Naude - 2013-04-05 11:54

    It is so wrong for one person to earn that kind of money. It makes me sick to think that millions of people struggle to make a living with qualifications, doing 2 jobs. They scrape together a lifetime's worth of money just to struggle in their old age, because the retirement annuity didn't pay out as much as they expected. Sickening!

      Christopher Douglas - 2013-04-05 11:58

      study hard, work hard and get hard earned cash, end off story.... so please dont blame the poor guy

      Bruce Gauld - 2013-04-05 12:21

      He met his targets all the while running the giant company. Do you know what it takes to be successful in that position? Its flippin hard work. Look at the CEO's of govt companies and how they fail miserably at almost every major task given to them. This man works hard for that cash, his responsibilities are huge. If he messes up many peoples entire life savings could vanish. He deserves it!!

      Shayne Ronald Barker - 2013-04-05 12:23

      Insanity is doing the same thing over and over and over again while expecting a different result. Its sad how the ppl keep voting for the anc while expecting a different result. ......

  • ruth.vanzyl - 2013-04-05 11:55

    Hmnnn now I know why they won't pay out my Investment Poliucy!!!!!

      Ruan Smith - 2013-04-05 16:08

      You have no clue what so ever lady!! dont blame a lack of understanding on your behalf for the product you chose, products have rules,and if you breach those rules then there will be consequences. Easy!!

  • Mary Molatse - 2013-04-05 11:56

    Good for him. He studied, worked hard and took full advantage of the opportunities he was given. All those complaining, move to Cuba or some other communist sh*t hole.

      Nhlanhla Kambule - 2013-04-05 12:00

      If he was black lots of noise would be made regardless of education but kisser

      WILLIAM2012 - 2013-04-05 12:54

      Well said Mary Molatse!!!

      Ruan Smith - 2013-04-05 16:11

      Nhlanhla, you are silly!!! how can you compare him based on colour? give us an example of such bias? Zuma'ville is not nearly the same thing!! Also he is not being paid by tax payers, its a private company!!

  • Christopher Douglas - 2013-04-05 11:57

    ka ching ka ching smilling all the way to the bank

      Kagiso Tlhakung - 2013-04-05 12:14

      If it was a black guy you would be screaming corruption nywenywenywe, its clear in SA a black person is not supposed to earn good money. I bet you are a believer in Verwoerds 1961 words. You en ur pink friends make me sick, South Africa is not free for black people at all

  • Phillip Kusaranyari - 2013-04-05 12:01

    education is the key

  • Josh Strauss - 2013-04-05 12:03

    Also remember that 40% of that goes to government coffers in tax so they will also be smiling with their R13.2m payout.

      jacqui.daanevanrensburg - 2013-04-05 15:39

      Josh Strauss, If this salary is being paid out in Britain, he will pay almost 70% tax.

  • Nokukhanya Ngcongo - 2013-04-05 12:14

    Wow thts a lot of cash! Well his earned it I guess, well deserved salary

  • Karabo Phetoane - 2013-04-05 12:16

    if he was blacks there could have been a lot of hullabaloo

  • mstrato1 - 2013-04-05 12:20

    My man...

  • Shayne Ronald Barker - 2013-04-05 12:26

    Who cares? They a huge company that is running smoothly. They can afford to pay their staff or CEO whatever they wish!! Not as if they asking for more money due to poor management!

      Junior Mahlo - 2013-04-05 14:39

      Is he your uncle or something?

  • Barry Potgieter - 2013-04-05 12:40

    For what????? For STEALING my Disability pay out when i was Boarded with a Disability and could not work any longer after paying my Insurance premiums for near onto 35 years. Old Mutual not to be trusted. Sanlam payed me out and i receive that Pension Monthly, but NO, Old Mutual Refused. I Have Warned all my Children and Friends to be very weary of Old Mutual.

      Ruan Smith - 2013-04-05 16:15

      you are part of the 2% of claims not paid, most of those claims declined were due to people not disclosing all relavant info in the application process. Sorry to hear about a non payment, but maybe you should state their reason for non payment as well.

  • WILLIAM2012 - 2013-04-05 12:43

    Zuma must be fuming!knowing that a white!! person!! received such a good package.well done to old mutual's CEO you earned every cent. ( keep up the good work )

  • Craig Lott - 2013-04-05 12:51

    So this is how it works. Policy holders pour billions into Old Mutual every month. Stacks of cash lying around. Old Mutual "invest" this cash in various "investments" and then declares a profit at the end of the year. Shareholders and executives all score - big time. particularly the executives who walk away with big bonuses from the cash pool. Now. in 30 years time policy holders try and draw on their investments, and what are they told. Sorry. The markets were down. Growth was slow. Inflation increased. You actually lost money. It has happened before. Who are the biggest financial cheats in the world?

      Lehasa Moloi - 2013-04-06 10:07

      Well said Craig. It is institutionalized slavery of the majority by the minority who grant themselves licenses to steal

  • Ntloko Yamazizi - 2013-04-05 12:53

    I wonder if it was a well educated South African we were not going to make noise about his party. Now that he is not a south African we praise him. funny

  • Lucan Gopal - 2013-04-05 12:54

    Julian Roberts is based at the headquarters in London, not South Africa. He is not the CEO of Old Mutual SA.

  • John Smith - 2013-04-05 12:59

    It no longer about how hard you work or how smart you work, its about how much influence your role has. His salary is justified when you look at from the perspective that he has improved the value of a trillion rand business. As shareholder, it would cost me a cent of my earnings. I would far rather do that than employ someone for 800k and see the value of my share plummet

  • Ferdi Preller - 2013-04-05 13:11

    Government pays more! Ask Zuma!

  • John Smith - 2013-04-05 13:24

    Why the fuss _ at least he works for it. Soccer players are paid more than this

      jacqui.daanevanrensburg - 2013-04-05 15:42

      John Smith. Lionel Messi playing for Barcelona earns 30mil EUROS a year. How is that for an income?.

  • Leonard Wesley Gray - 2013-04-05 13:45

    33 million of dumb investor's money.

  • komorison - 2013-04-05 13:55

    The 1% is still doing very well I see. Disgusting. How much is enough!

  • Dave Wilson - 2013-04-05 14:11

    Now I understand why after a 10 year investment policy I had with them matured, they could not even pay out the money I had put into the scam, sorry scheme.

  • Dwayne Dick - 2013-04-05 19:38

    Old Mutual is bad, plus they do not employ ant white people.

  • Marko Kalapac' - 2013-04-06 06:17

    So what? He's earned it!

  • Vic Grant - 2013-04-06 07:27

    it,s a disgrace. I as a pensioner who invested for donkey years in Old Mutual and has a provident fund investment them only receives a monthly pittance.

  • Deon van Tonder - 2013-04-06 09:12

    We have to wait 20 years to get 1% of his salary he gets in a year. Is that how it is suppose to be?

      Lehasa Moloi - 2013-04-06 09:58

      Very sad indeed for pensioners. I call it a legalized criminal offence.

  • Yvonne Peter - 2013-04-06 10:58

    and i battled for months to receive funds from a policy !!!!! WTF !

  • Russel Mukondwa - 2013-04-06 11:45

    Old Mutual is a company that takes good care of its employees as well, so its ok for the CEO to get that kind of money. Its not like the mining companies where the CEO can get more than that and the workers who undertake life threatening jobs to make the money are paid peanuts.

  • Mada Banda - 2013-04-06 16:47

    BAD JOURNALISM - GBP 870 000 = R12 MILLION and not R21 million as you reported. Im not surprised most people did not notice this as your concern is only what goes on within these borders as i have noticed in my time here

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