Shipping boss sails to island of bounty

Notwithstanding the tough economic times, 22 people earned performance bonuses of more than R10-million last year.

Grindrod's Tim McClure tops the list with R31.97-million, probably in recognition for the freight and shipping company's share price achieving 58% compounded growth in the 10 years to last year and an all-in return of 52% a year in the 10 years to this January. This is the best share-price performance on the JSE, powered mostly by McClure's shipping division.

But lately Grindrod's financial performance has been hit by the economic downturn. Yet while Grindrod took a 60% hit in earnings and watched spot shipping rates collapse last year, forcing the group to pick up the slack in other diversified services, McClure was recognised for his contribution to Grindrod, as well as being named Shipping Personality of the Year Award at the International Bulk Journal Awards.

Grindrod's directors were paid a total of R106.7-million last year for performance - not bad for a medium-sized business.

Outgoing British American Tobacco (BAT) CEO Paul Adams is also sitting pretty after deciding to leave the remarkably resilient tobacco producer. His successor, chief operating officer Nic Durante, was rewarded with a bonus payout of R12.14-million - less than half of Adams's bonus.

During Adams's seven years as BAT leader, the company acquired more than $5-billion in tobacco assets and the company's stock almost tripled, going a long way to staving off the worry of declining cigarette consumption around the world due to smoking bans and taxes.

Pine Pienaar, CEO of Mvelaphanda Resources to June last year, received R62.87-million in remuneration in his final year in charge, stepping down before the company's unbundling. Pienaar's basic remuneration of R2.53-million was combined with a long-term retention scheme and a bonus payout of R22.38-million; a long-term retention scheme accelerated payout of R34.35-million (the payout of shares which would have vested after the unbundling of Mvela); as well as benefits of R3.6-million (unpaid leave and a year's salary, in terms of Pienaar's contract). Such terms were explained as necessary to lure Pienaar from Harmony in 2004.

Another CEO familiar with performance bonuses is Clientele's Gavin Soll, who in 2007 received South Africa's biggest bonus of R17-million; last year his bonus was more than R19-million - massive for a small company.

Clientele reported an increase in embedded value of more than R2-billion in the year to June 2010, saying it had defied tough economic conditions in the preceding months. Headline earnings per share were up 11% and the group recorded record insurance premium revenue of more than R1-billion - an increase of 7% on the previous year. Soll is on track for another bumper payout.

Since being appointed CEO of Old Mutual, Julian Roberts has been working on an overhaul of the group, carving it up and selling struggling units in problematic territories. The first non-South African to head the business, Roberts's performance since 2008 in simplifying the group's structure and unlocking value for shareholders has seen him handsomely rewarded, to the tune of R13.6-million.

Some of the biggest performance bonuses last year went to:

• Tim McClure - Grindrod: R31.97-million
• Paul Adams - BAT: R27.98-million
• Pine Pienaar - Mvela Resources: R22.38-million
• Glynn Burger - Investec: R19.29-million
• Gavin Soll - Clientele: R19.13-million
• Bernard Kantor - Investec: R17.88-million
• Stephen Koseff - Investec: R17.88-million
• Julian Roberts - Old Mutual: R13.61-million
• Marius Kloppers - BHP Billiton: R13-million