Macozoma makes a mint on Nail shares
July 26, 2004
By Gugulakhe Masango
Johannesburg - Saki Macozoma, the former chief executive of New Africa Investments Limited (Nail), made R9 million from exercising his options for more than 2 million N shares in the empowerment company, Nail`s latest annual report shows.
His total package from Nail in the year to December was more than R2.3 million. The package included a performance bonus of about R510 000 and a basic salary of R1.8 million.
According to the company`s annual report, Macozoma was awarded his bonus for the containment of head office costs, growth in headline earnings, sale of non-core assets, reduction of discount to net asset value and the performance of the share price. Macozoma resigned as Nail`s chief executive in May after the group failed to acquire Kagiso Media and Johnnic Communications.
But the company said the performance criteria were hampered because Nail was trading under a cautionary announcement in the year.
Nail`s executive directors in charge of the day-to-day running of the company, Kenny Setzin and Raymond Kevan, received a combined total package of R2.8 million.
Both directors exercised 1 million N shares each at R10.50 a share and received a combined net benefit of nearly R9 million.
Setzin and Kevan are still faced with the task of disposing of Nail`s stakes in car rental business Hertz and radio station Kaya FM, and a small interest in a film company. The company estimated that these investments were worth R108 million.
The company will hold its annual general meeting today to consider the directors` remuneration and to re-elect directors.
The meeting will not discuss the future strategy of the company, which is now majority owned by the Tiso-led consortium consisting of Safika Holdings, Investec Bank, the Mineworkers Investment Company, Tiso Group, Multidirect Investments and Newshelf 730.
During the year, Nail`s board returned R870 million to shareholders.
The company has already sold Urban Brew, RadMark, New Africa Books, KFM94.4fm, Jacaranda 94.2fm and New Africa Publications.
After the disposal of nearly all of Nail`s assets, Macozoma stepped down as chief executive in May. He remains a non-executive director.
Two weeks ago, he and Cyril Ramaphosa led the Tutuwa empowerment consortium that bought the equivalent of 4 percent of the local operations of Standard Bank.
Nail was untraded at R1.40 on Friday. The media and entertainment sector rose 0.85 percent .
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