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From Feb 2014 to Feb 2019 #PSG's 3 Executive Directors were paid R242 million, around R80 mil each, excl unvested options. What exceptionally rare skills did they possess, and how did they perform to justify these extraordinary payments ? 1)
2) Exec remuneration increased from R16.75 to R127.39 mil from Feb '14 to Feb '19 for these 3 Execs. That's an avg compounded annual increase of 50% ! #PSG's share price cagr was 21.07% in same period /3
3) in same period Capitec's share price increased from R194 to R1452, or an 49.50% avg compounded annual increase. Just accounting for it's Capitec stake, PSG's share price should have increase by c. R204-50 / share, but managed only R148-50 of that. Lost value R56 / share /4
4) #PSG's SOTP value, it's primary measurement of value added and performance increased from R92-80 at Feb '14 to R321-46 today. Of that R228-66 increase @CapitecBankSA accounts for R204-54 / share, or about 90% . /5
5) Therefore, excluding @CapitecBankSA , #PSG's SOTP value only increased by about 4.73% compounded annually the past 5 years., in contrast to the 3 Exec's compensation of 50% compounded annually in same period.
6) #PSG's share price discount to it's SOTP increased from 2.3% in Feb '14 to 27% currently. That's value destruction of R14 Billion . For that shareholders paid the 3 execs R242 mil up to now and still counting ...
7) But #PSG's remuneration report would have shareholders, the rest of the investment community and the public at large believe that the exec's interests are aligned with ordinary investors.
