earningsFinancial Mail reports that at Investec’s AGM on 4 August 2016, CEO Stephen Koseff’s "big bucks" will come under fierce scrutiny.  

Koseff’s salary last year amounted to £4.36m, or R82.7m in rand terms.  That made him, by some distance, the best-paid CEO of any JSE-listed bank.  By contrast, Barclays Africa CEO Maria Ramos took home R28.2m.  Yet in respect of all of SA’s four largest banks, profits exceeded those of Investec.  Investors have noticed.  Last year, 25% of Investec’s shareholders voted against its pay proposals.  Allan Gray portfolio manager Simon Raubenheimer comments thus:  "We’ve applied our minds a lot with the AGM coming up, and we believe Investec’s remuneration is not only excessive, but there’s also no clear alignment with shareholders."  He won’t say yet which way Allan Gray will recommend its clients should vote.  But "no" is probably a safe bet.  Of course, the vote on pay isn’t binding — but companies ignore investors at their peril.


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