Investec CEO’s Bonus Quadruples Pay After Profit Rises 28%

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

To contact the editor responsible for this story: Dale Crofts at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.