Today's Labour News

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earningsBusinessLive reports that Sanlam CEO Ian Kirk is taking a 20% cut on his 2017 bonus – a reduction of R2.5m – as part of a company-wide trim to incentives relating to Steinhoff exposure contained in client funds.  

About 100 employees across Sanlam, including in its investments business, capital markets unit and among executives, will be affected by incentive cuts totalling R50m.  Kirk, who was not directly involved in decisions to buy Steinhoff shares, said on Thursday:  "It was the right thing to do.  Sanlam clients who suffered losses on Steinhoff would be asking, ‘How are Sanlam executives suffering?’."  The move is highly unusual in an industry that is frequently criticised for accepting handsome performance fees when funds do well, but seldom participating in the downside to the same degree.  Shareholder activist Theo Botha remarked that it would be interesting to see what other asset managers did in the light of Sanlam’s move.

  • Read this report by Hanna Ziady in full at BusinessLive (paywall access)

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