Old Mutual CEO paid R33m in 2012

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)