Investec Plc (INVP), the owner of a bank and a money manager in South Africa and the U.K., more than quadrupled Chief Executive Officer Stephen Koseff’s pay when he received a bonus following a 28 percent increase in profit.
Koseff, 61, received salary and benefits of 450,000 pounds ($685,000) and a bonus of 1.5 million pounds, of which 1.2 million pounds was deferred, according to the Johannesburg- and London-based company’s annual report, published on June 28. In fiscal 2012, Koseff had the same 450,000-pound salary and benefits, and waived his bonus after profit dropped and returns touched a record low.
The CEO was granted the bonus “in light of the positive financial performance of the group in 2013 and after consideration of progress across a range of non-financial measures,” Olivia Dickson, acting chairman of the compensation committee, wrote in the annual report.
Managing Director Bernard Kantor and Finance Director Glynn Burger also received 1.5 million-pound bonuses, while a 4.4 million-pound bonus was paid to Hendrik du Toit, who heads the company’s asset-management arm.
Koseff was South Africa’s highest-paid banker in 2011, even as Investec posted the lowest returns among the country’s five largest banks. Since January, Investec has been the country’s best-performing bank stock this year, while Du Toit’s fund-management business posted record inflows for the year through March. As many as 80 percent of analysts rate the stock a buy, according to data compiled by Bloomberg.
Investec rose 3 percent to 65.90 rand by the 5 p.m. close in Johannesburg trading.
To contact the reporter on this story: Renee Bonorchis in Johannesburg at email@example.com
To contact the editor responsible for this story: Dale Crofts at firstname.lastname@example.org