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BL Premium reports that Old Mutual is seeking legal advice about recouping a portion of incentive bonuses paid to former CEO Peter Moyo, was fired in June due to a breakdown in trust and conflicts of interest.
Other than losing out on at least R31m because he is no longer employed by the company, he might have to pay back a portion of the R70m in performance incentives he was awarded since his appointment as CEO of Old Mutual Emerging Markets in June 2017. When Moyo was suspended in May, Old Mutual chair Trevor Manuel said the move was not due to poor performance. Vesting of R31m of long-term incentives was tied to Moyo’s continued employment at the insurance group. The additional R39m of incentives were performance-related and are expected to be at the centre of negotiations between the two parties or the legal battle being threatened by Moyo’s lawyers. Well-known labour analyst Andrew Levy pointed out that executive remuneration, and specifically long-term incentives, were not governed by labour law but by contract law. Levy said that under labour laws, Moyo could have argued that he performed as required until he was fired and therefore he was entitled to the incentives, at least on a pro rata basis. However, under contract law such a claim was dependent on what his contract of employment actually stipulated.
- Read the full original of the report by Ann Crotty and Londiwe Buthelezi on the above story at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page