| Wed 11 May 2005, 11:42 | | PIC to question 60% pay hike for Sanlam chief |
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PIC to question 60% pay hike for Sanlam chief
Rob Rose
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Chief Reporter
PUBLIC Investment Corporation (PIC) CEO Brian Molefe said yesterday he would be asking life assurer Sanlam to explain why it wanted shareholders to approve a 60% pay increase for chairman Roy Andersen at its June 1 annual general meeting.
This came as the PIC threatened to flex its newfound shareholder activist muscle, especially when it comes to what it regards as excessive salaries being paid to top businessmen.
In its annual report, Sanlam asks shareholders to approve an increase in Andersen’s pay, to R1,2m a year from its previous R750000, after he joined the company in June last year, having quit as CEO of rival Liberty.
But Andersen also joined construction group Murray & Roberts as chairman in January last year, at which time the company paid him R700000 for the year, a sharp rise from the R300000 paid to previous chairman Dave Brink. From this year, Andersen will get R735000 from Murray & Roberts.
The annual report of Murray & Roberts shows it increased its average pay by 10% last year, while Sanlam said yesterday it had increased its average pay for employees 8% last year.
Sanlam and Murray & Roberts’ remuneration committees are chaired by the same person, Boetie van Zyl, who sits on both boards.
Van Zyl said yesterday that Sanlam’s proposed increase was an attempt to pay Andersen according to the time he would be expected to spend with the company, and his expertise.
“We also wanted to align Mr Andersen’s salary with (those of) the chairmen of various other financial groups in the banking and insurance industry. He was being paid below many of the other chairmen,” said Van Zyl.
He said Andersen played an important role when it came to deciding on Sanlam’s strategy, especially with regard to its investment in banking group Absa.
When it came to Murray & Roberts, Van Zyl offered a similar explanation. “We expect quite a commitment from Mr Andersen in terms of time and input.
“He won’t take on any other directorships, for example, without clearing it with us first.”
Sanlam’s previous chairman, Ton Vosloo, earned R631000 during 2003. Last year, Old Mutual’s UK-based chairman, Mike Levett, received total pay of about R3m.
In banking, Standard Bank chairman Derek Cooper earned R3,3m last year for his work at the bank and Liberty Life. Absa chairman Danie Cronje earned R2,1m for the year to March last year, Nedcor chairman Warren Clewlow earned R1,5m, while FirstRand’s GT Ferreira earned R1,25m.
But Eric Molobi, chairman of life company Metropolitan, received only R80000 for his six months of work last year, while African Life chairman Sipho Nkosi earned R176000 for 2004.
PIC spokesman Mukoni Ratshitanga said yesterday that his organisation, which holds 9,4% of Sanlam, would liaise with Sanlam on this matter.
“If their explanation makes sense, then we will accept it. But if we disagree, then we will express our views,” Ratshitanga said.
The PIC, with 16%, is also the single largest shareholder in Murray & Roberts.
