Financial Mail writes that Sibanye-Stillwater’s remuneration report for 2022 shows that CEO Neal Froneman’s remuneration was reduced by a whopping R110.6m, but he was still left with a hefty R189.7m, which was not quite as indignation-creating as the R300.3m he was awarded a year earlier.
But, as with most other listed companies, the trimming of enormously generous remuneration packages this year has been due to general market weakness and lower share prices and not some miraculous restraint by remuneration committees (remcos). Crotty says that suggestions that the Sibanye remco took heed of the fuss last year, when news of the R300m coincided with a miners’ strike, and pared back this year’s payment as a result, is little more than wishful thinking. The long-term share incentives put in place in 2019 meant that couldn’t happen, even if the remco wanted it to. The committee did make some tweaks to the remuneration policy, but the effect was nothing Froneman would have noticed in his pay packet. Instead, the latest reduction was entirely due to the lower share price. On total guaranteed pay and short-term incentives, where the remco might have had some discretion, Froneman scored a 30% increase to R35.4m from R27.2m the previous year. Ironically, changes that were implemented because of last year’s furore could shelter Froneman and his executive colleagues from the full impact of any sustained share price weakness. In its latest report the committee says it has “introduced a new methodology for moderating the applicable share price used in LTI [long-term incentive] awards and vestings”. The committee has also provided for increased discretion to deal with “anomalous” LTI outcomes. Sibanye’s continued generosity helps to ensure the mining sector remains the standout in the pay stakes. This used to be a position jealously guarded by the banks, but thanks to the sky-high commodity prices of a few years ago, the miners have risen to the top.
- Read the full original of the report in the above regard by Ann Crotty at Financial Mail (subscriber access only)
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