Discovery Holdings Ltd., which owns South Africa’s largest medical-insurance administrator, tripled Chief Executive Officer Adrian Gore’s annual performance bonus after company profit increased by 42 percent.
Gore, 46, was paid a total remuneration of 8.46 million rand ($1.23 million) in the last fiscal year, which included a basic salary of 2.3 million rand, a performance bonus of 4.67 million rand and a so-called phantom bonus plan of 924,000 rand, according to the Johannesburg-based company’s annual report received by e-mail yesterday. The previous year’s annual report showed Gore’s salary package totaled 5.16 million rand, including basic pay of 2.91 million rand, a performance bonus of 1.56 million rand and phantom pay of 51,000 rand.
Discovery, which Gore founded in 1992, has increased net income every year for 10 years. In South Africa, which doesn’t provide a national health-care system, many companies including Rand Merchant Bank and Avusa Ltd. have joined Discovery’s medical plan to provide private health care for their staff.
Discovery also offers programs linked to gyms and retailers such as Pick n Pay Stores Ltd. to encourage customers to use the insurer’s services. As the domestic market has matured, Discovery has branched out into China, the U.K. and the U.S. to maintain its earnings growth.
The company’s phantom bonus plan is cash-settled and linked to Discovery’s share price, paying out two, three and five years after allocations are made, according to the company. The insurer’s share price has risen 33 percent in the past 12 months.