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South Africas Richlist 2009
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FULL RICH LIST P2, FULL EARNINGS LIST P4
MEET THE REAL TYCOONS OF SOUTH AFRICA
November 1 2009
HOW THEY MAKE IT... HOW THEY SPEND IT
Worth: R16.95bn Worth: R14.25bn Worth: R5.36bn Paid: R 41 1 . 6 0 m Paid: R50.38m Paid: R 4 9. 5 2 m
In a year the top 10 richest in SA lost ...
R 5 6 .1 - B I L L I O N
LAKSHMI MITTALThe steelbaron’s wealthhas droppedmore than half
PATRICE MOTSEPELost some valuebut still therichest SouthAfrican
NICKYOPPENHEIMEROnly his sharesin Anglo arecounted
CHIP GOODYEARShare gainsboost an alreadyhuge salary
BRETT LEVYHuge benefitsfor a smallp l ay e r
STEPHEN KOSEFFBasic salary lessbut performancebonus huge
HOW IT WAS ALL FIGURED OUTDirectors’ holdings for the Rich List reflectwealth at March 31 2009. The earningstable reflects what was earned in 2008.
THE RESEARCH WAS DONE AS FOLLOWS:An initial extraction of the remunerationand options, headline earnings and di-rector and family holdings was made byWho Owns Whom research staff. Theinformation was reviewed from the pub-lished documents by Who Owns Whommanagement and compared with the ex-traction. The information was again re-searched from the published documentsand compared with the management re-sult by the Who Owns Whom executivedirectors. Each director’s holding wassent to the relevant company secretary forc o r r o b o r at i o n .
PLEASE NOTE:ý The calendar years 2007 and 2008 were
researched from hard copy and Internetdocuments published in terms of the Com-panies Act and JSE listing requirements;
ý Shareholdings were extracted as pub-lished in public documents and publicshare registers;
ý Shareholdings included those held viatrusts, where this was deemed appro-p r i at e ;
ý The market price as at March 31 2009was used for the valuation of holdings;
ý It was assumed that the conditions ofconditional options would be met;
ý Options issued under more than onescheme or over a period were added wherethis was deemed appropriate;
ý Gains on options exercised in the yearunder review were included in remuner-at i o n ;
ý Earnings and directors’ fees paid toother companies were excluded;
ý Severance packages and retentionbonuses were included in remuneration;
ý Conversion rates to the rand were asfollows: British pound 14.3, US dollar 7.5,euro 11.3.
NOTES REGARDING THE RESEARCH:ý MTN DirectorsThe Alpine Trust and Newshelf 664 were
unwound in December 2008 as per theirsix-year mandate and the shares distribut-ed to directors and staff in accordancewith the mandate after settlement of debt,primarily to the PIC. In terms of previousvaluations of director entitlements wewere not privy to the funding arrange-ments and qualified those holdings asfollows: “It should be noted that the fund-ing arrangements for these holdings havenot been disclosed, which could offsetagainst the value of the holdings.”
The valuation of directors’ holdings inthe current study have not been confirmedby the company and were calculated basedon SENS announcements on the trans-action issued by the company.
ý Patrice MotsepeMotsepe’s holding in African Rainbow
Minerals is via African Rainbow MineralsExploration Investments (Pty) Ltd, but theshareholding of this private company isnot disclosed.
Countingthe manypennie s
November 1 2009
HOW THEY MAKE IT... HOW THEY SPEND IT
RICH LISTRICH LIST2M E T H O D O LO G Y
Data is checked, andchecked again
Lakshmi Mittal
Patrice Motsepe
Nicky Oppenheimer
Christo Wiese
Ackerman Family
Elephant Consortium
Rembrandt Trust
Desmond Sacco
Stephen Saad
Laurie Dippenaar
GT Ferreira
Bruno Steinhoff
Bill Venter
Adrian Gore
Giovanni Ravazzotti
Tokyo Sexwale
Cyril Ramaphosa
Giuseppe Zannoni
Gus Attridge
Koos Bekker
Barry Swartzberg
Royal Bafokeng Consortium
Jannie Mouton
Paul Harris
Michael Lewis
Maxim Krok
Phuthuma Nhleko
Markus Jooste
Sipho Nkosi
Lazarus Zim
Johnny Copelyn
Mark Willcox
Koos Raubenheimer
Michiel le Roux
Phoevos Pououlis
Brett Levy
Leon Kirkinis
Saki Macozoma
Zweli Mntambo
Mark Levy
Freddie Kenney
Marcel Golding
Peter Malungani
Des de Beer
Gino Stefanutti
Steven Gottschalk
Brian Joffe
Willie Marais
Alec Wapnick
Gordon Schachat
Hans Enderle
Roland Sassoon
Robert Nisbet
Stephen Koseff
Michael (Motty) Sacks
Meyer Kahn
Whitey Basson
Pat Goss
Bernard Kantor
Claas Daun
Ragi Moonsamy
William Battershill
Riaan Swart
Dave Van Niekerk
Nkululeko Sowazi
Alwyn Martin
Gary Morolo
Mikki Xayiya
Kevin James
Herschel Mayers
Edwin de la Harpe Hertzog
Msolisi Diliza
Herbert Theledi
Alan Burke
Jeffery Wapnick
Maldwyn Zimmerman
Reginald Sherrell
Sifiso Dabengwa
Sharon Wapnick
Dalikhaya Zihlangu
Michael Wylie
Sean Melnick
Jens Montanana
Robert Gumede
Michael Mark
Brian Holmes
Ivan Clark
Panagiotis Halamandaris
Pat Goldrick
Wolf Cesman
Lionel Jacobs
Marc Wainer
Terry Moolman
Neil Jowell
Jeff Zidel
Cecil Jowell
Theofanis Halamandaris
Simon Susman
Hymie Levin
Ian Kantor
Shaun Rai
Thys Visser
Perikles Halamandaris (jnr)
Glynn Burger
John Robertson
Jebb McIntosh
Herman Mashaba
Adam Fleming
Christopher Seabrooke
Chris Kruger
Arnold Goldstone
Thami Sokutu
Gregory Lotis
Piet Boshoff
Glen Forsdyke
David Ellwood
Dennis Polak
Nick Vlok
Steve Pacak
John Halamandres
Nigel Townshend
Steven Joffe
Brian Buckham
Antoinette Sedibe
Gavan Ryan
Moss Ngoasheng
Graham Mackay
Leslie Maasdorp
Tony Scharrighuisen
Elliot Salkow
David Samuels
Paul Theodosiou
Ronald Price
Mamphela Ramphele
Grant Pattison
Horst Sass
Martin Moritz
Fred Robertson
Barry Stuhler
Hugh Herman
Louis Stassen
Yolanda Cuba
Akhter Deshmukh
Graeme Gordon
Mustaq Brey
Riaan Stassen
Yogesh Narsing
Jonathan Hlongwane
David Lewis
Brian Bruce
ArcelorMittal SA
SanlamAfrican Rainbow Minerals
Anglo American plc
Shoprite HoldingsPSG GroupInvicta HoldingsTradehold
Pick n Pay Holdings
Telkom
Remgro (holding in B shares)
Assore
Aspen Pharmacare
FirstRandRMB Holdings
RMB Holdings
Steinhoff International
AltechAltron
Discovery Holdings
ItaltileCeramic Industries
Mvelaphanda ResourcesMvelaphanda Group
SABMiller plcStandard Bank GroupBidvest GroupAssore
ItaltileCeramic Industries
Aspen Pharmacare
Naspers -N
Discovery Holdings
Merafe ResourcesMetair Investments
Steinhoff InternationalPSG Group
FirstRandRemgroRMB Holdings
Foschini
Aspen PharmacareGold Reef Resorts
MTN Group
Steinhoff InternationalPSG GroupPhumelela
SanlamExxaro Resources
SanlamNortham Platinum Mvelaphanda Resources
HCI
Mvelaphanda ResourcesMvelaphanda Group
Raubex Group
Capitec Bank HoldingsZeder Investments
Keaton Energy Holdings
Blue Label Telecoms
African Bank Investments
Standard Bank Group
Exxaro Resources
Blue Label Telecoms
Raubex Group
HCI
Investec LtdPhumelela Gaming & LeisureSuper Group
Pangbourne PropertiesResilient Property Income FundCapital Property Fund
Stefanutti & Bressan
Value Group
Bidvest GroupAfrocentric
Omnia Holdings
Premium PropertiesOctodec Investments
African Bank Investments
City Lodge Hotels
Sasfin Holdings
MTN Group
Investec plcInvestec
NetcareAdvtechAfrocentric
SABMiller plcAfrocentric
Shoprite Holdings
FirstRandRMB HoldingsAVI
Investec plcInvestec LtdPhumelela Gaming & Leisure
Steinhoff InternationalKap International
Growthpoint PropertiesMvelaphanda Resources
BSI Steel
Blue Financial Services
Blue Financial Services
Exxaro ResourcesEmira Property Fund
Petmin
Datacentrix Holdings
Mvelaphanda ResourcesMvelaphanda Group
Country Bird Holdings
Discovery Holdings
RemgroMedi-Clinic CorporationDistell Group
Growthpoint Properties
Blue Label Telecoms
ARB Holdings
Premium PropertiesOctodec Investments
Combined Motor Holdings
Invicta Holdings
MTN Group
Premium PropertiesOctodec Investments
Exxaro Resources
Wilson Bayly Holmes - Ovcon
Peregrine Holdings
Datatec
Gijima AST Group
Truworths International
Wilson Bayly Holmes - Ovcon
Grindrod
Famous Brands
Cashbuild
Redefine Income FundApexhi PropertiesMadison Prop. Fund Managers
Bidvest Group
Redefine Income FundMadison Prop. Fund Managers
Caxton & CTP Pub. & Printers
TrencorMobile Industries
Resilient Property Income Fund
TrencorMobile Industries
Famous Brands
Woolworths Holdings
NetcareAdvtechFamous Brands
Investec plcInvestec Ltd
Ambit Properties
British American Tobacco plc
Famous Brands
Investec plcInvestec Ltd
Discovery Holdings
Combined Motor Holdings
Growthpoint Properties
Witwatersrand Cons Gold
Massmart HoldingsDatatecMetrofile HoldingsSet Point Technology
Africa Cellular Towers
Invicta Holdings
African Bank Investments
Metmar
Metmar
Metmar
Metmar
Foschini
Digicore Holdings
Naspers -N
Famous Brands
TWP Holdings
Gold Reef Resorts
Advtech
Keaton Energy Holdings
Coronation Fund ManagersMetair Investments
Kelly Group
SABMiller plc
Pangbourne Properties
Argent Industrial
Ellies Holdings
Invicta Holdings
Acucap PropertiesSycom Property Fund
Eureka Industiral
Medi-Clinic Corporation
Massmart Holdings
Bowler Metcalf
Comair
RemgroBrimstone
Pangbourne PropertiesCapital Property Fund
Growthpoint PropertiesInvestec plcInvestec LtdPick n Pay Holdings
Coronation Fund Managers
Steinhoff International HoldingsMvelaphanda Group
Sea Kay Holdings
Liberty International plc
Nedbank GroupBrimstone Investment Corp.
Capitec Bank Holdings
Pangbourne Properties
Vukile Property FundEsor
Resilient Property Income Fund
Murray & Roberts
52.02%
5.75%41.46%
2.50%
15.15%8.05%
33.15%61.19%
49.33%
5.85%
0.00%
23.79%
14.71%
0.06%7.49%
7.21%
11.79%
0.02%56.14%
9.47%
32.13%33.03%
13.24%16.90%
0.00%0.29%0.46%4.01%
22.69%23.17%
4.99%
1.16%
4.92%
29.28%24.85%
0.26%23.66%
0.05%0.04%2.49%
6.30%
2.34%5.45%
0.32%
2.28%10.39%1.28%
0.01%2.26%
0.01%1.25%6.74%
10.33%
6.62%4.04%
13.69%
15.78%0.04%
28.68%
11.73%
2.02%
0.31%
1.56%
10.76%
11.29%
7.08%
2.88%4.54%7.39%
0.06%5.64%0.65%
25.72%
55.60%
1.02%1.51%
13.22%
10.53%12.50%
1.49%
10.61%
44.14%
0.14%
1.15%0.71%
2.09%0.10%2.10%
0.11%2.10%
0.91%
0.00%0.96%0.07%
0.01%1.98%4.52%
0.03%39.98%
0.43%2.46%
44.66%
16.62%
16.62%
0.61%1.59%
28.92%
39.54%
2.21%4.04%
57.98%
1.43%
0.46%0.57%0.02%
1.09%
5.87%
51.39%
6.46%9.18%
40.43%
13.49%
0.10%
6.19%8.71%
0.79%
3.46%
14.69%
7.04%
34.07%
1.22%
3.10%
2.58%
12.22%
9.42%
0.03%0.02%
12.04%
0.54%
0.02%11.81%
2.64%
0.03%12.64%
2.68%
0.03%12.41%
10.59%
1.58%
0.77%2.50%1.06%
0.35%0.75%
6.60%
0.03%
9.48%
0.49%0.39%
0.81%
23.73%
0.62%
9.50%
0.30%0.40%5.43%
19.65%
34.23%
7.50%
0.56%
15.30%
15.30%
15.30%
15.30%
1.03%
15.73%
0.16%
7.51%
24.46%
2.07%
6.95%
6.89%
3.68%6.47%
30.77%
0.04%
1.59%
11.41%
37.18%
6.34%
2.29%0.06%
41.10%
0.73%
0.66%
21.49%
10.37%
0.00%11.62%
0.60%1.42%
0.00%0.31%0.28%0.02%
5.52%
0.59%0.16%
24.42%
0.42%
0.00%11.25%
2.94%
1.32%
1.84%4.32%
1.35%
0.57%
R16 950
R2 093R12 153
R5 359
R4 166R217R502R168
R3 267
R3 214
R3 116
R2 886
R2 422
R90R1 866
R1 796
R1 629
R1R1 516
R1 405
R877R469
R825R337
R1R366R135R487
R619R329
R821
R750
R730
R504R170
R35R638
R35R11
R620
R666
R385R270
R637
R315R280R10
R3R555
R3R116R420
R529
R412R81
R450
R424R0
R421
R413
R410
R392
R383
R379
R371
R363
R300R34R25
R4R325R23
R326
R324
R302R10
R311
R151R154
R302
R292
R285
R273
R198R74
R238R1
R14
R236R14
R249
R4R239
R4
R2R206R34
R4R238
R82R154
R234
R233
R233
R151R78
R224
R222
R137R81
R217
R212
R137R73R2
R209
R207
R205
R92R113
R204
R204
R204
R89R107
R195
R195
R193
R182
R181
R178
R174
R168
R167
R165
R2R2
R159
R159
R1R156
R157
R1R155
R154
R1R152
R145
R144
R87R37R15
R59R78
R132
R131
R130
R83R40
R120
R120
R119
R119
R42R10R17R46
R114
R114
R113
R111
R111
R111
R111
R109
R107
R106
R103
R103
R103
R102
R101
R57R44
R100
R100
R97
R97
R96
R96
R93R2
R94
R93
R93
R90
R90
R0R87
R36R50
R1R53R30R2
R85
R82R3
R85
R82
R0R81
R81
R80
R50R29
R78
R77
R16 950
R14 246
R5 359
R5 053
R3 267
R3 214
R3 116
R2 886
R2 422
R1 956
R1 796
R1 629
R1 518
R1 405
R1 346
R1 162
R988
R949
R821
R750
R730
R674
R673
R666
R666
R655
R637
R605
R558
R538
R529
R493
R450
R424
R421
R413
R410
R392
R383
R379
R371
R363
R360
R351
R326
R324
R312
R311
R304
R302
R292
R285
R273
R272
R254
R250
R249
R247
R242
R241
R236
R234
R233
R233
R229
R224
R222
R218
R217
R212
R212
R209
R207
R205
R205
R204
R204
R204
R195
R195
R195
R193
R182
R181
R178
R174
R168
R167
R165
R163
R159
R157
R157
R156
R154
R153
R145
R144
R138
R137
R132
R131
R130
R124
R120
R120
R119
R119
R115
R114
R114
R113
R111
R111
R111
R111
R109
R107
R106
R103
R103
R103
R102
R101
R101
R100
R100
R97
R97
R96
R96
R95
R2R94
R93
R93
R90
R90
R87
R86
R85
R85
R85
R85
R82
R82
R81
R80
R79
R78
R77
Director & company %holding
Investment total (R-m)
Director & company %holding
Investment total (R-m)
Director & company %holding
Investment total (R-m)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
THE RICHEST
Figures in this table have been rounded off
November 1 2009
HOW THEY MAKE IT... HOW THEY SPEND IT
RICH LISTRICH LIST 3BOSSES RAKE IN MILLIONS IN BONUSES REGARDLESS OF HOW WELL THEY DO
Tricks of the tradeCEOs look after No 1
LAKSHMI MITTAL PATRICE MOTSEPE CHIP GOODYEAR
MARCIA KLEIN
MEMBERS of remuner-ation committees havea lot to answer for.This year’s Rich List,
which tracks not only SA’s rich-est people, but also the country’sbiggest earners, shows that exec-utives are pocketing all sorts ofadditional bonuses and makingmega-profits on unacceptablygenerous share options.
This is in addition to huge basicsalaries and performance bonus-es, with bonuses still beingearned by many despite the non-performance of their companies.
The innovative ways andmeans to add to executives’ potsincreases with every year.
The list also shows executivesget special payments when com-panies dispose of assets or list.
In 2008 Chip Goodyear, the for-mer boss of BHP Billiton, earned astaggering R411.6-million, withR380-million pocketed from gainson shares. The top of the top-earners list is dominated by ex-ecutives of offshore-listed com-panies, including Richemont’sNorbert Platt, and British Amer-ican Tobacco’s Paul Adams.
I nve st e c ’s Stephen Koseff isranked fifth in the earnings tablewith R49.5-million pay in 2008,and MD Bernard Kantor, whoranked sixth, earned similarly.
But alongside the top inter-national earners are a few glaringanomalies.
Brett Levy, the joint CEO ofpre-paid telecoms company BlueLabel Telecoms, was the fourth-highest earner on the list, pock-eting over R50-million in 2008.This includes R40-million paid inlieu of a pre-listing contractualbonus entitlement, which wasthen used to buy shares. This isover and above an exceptionallygenerous R5.9-million salary for acompany of that size, and a per-formance bonus of R3.4-million.
Having got the shares from thepre-listing payment, and themany more he owns, Levy is nowSA ’s 36th richest person, withR413-million of Blue Label stock.Blue Label’s other joint CEO,B r e tt ’s brother Mark Levy, wasranked seventh in the earningstable, raking in R49.5-million, thebulk of it coming from the samescheme. His wealth is R379-mil-lion, ranking him 40th.
Prakash Desai, the CEO ofAvusa, the owner of this pub-lication, earned a massive R29.3-million in 2008, including a R10.7-million top-up payment on thesale of M-Net SuperSport and un-bundling of Naspers and otherassets, and over R13-million gainon the sale of shares.
The Levys, Grindrod’s Tim Mc-Clure (earnings: R39.8-million),Rainbow Chicken’s Miles Dally(R39.7-million) and Desai, all ofwhom received special payments
of some kind, all earned morethan executives of major com-panies like FirstRand’s outgoingCEO Paul Harris, Bidvest CEOBrian Joffe and Anglo AmericanCEO Cynthia Carroll.
Retention bonuses and re-straints of trade also featured onthis year’s earnings list. TelkomCEO Reuben September earnedR19-million, including a R13-mil-lion restraint-of-trade payment.
Kgomotso Mosehla, a formerexecutive of Mvelaphanda Re-sources, earned R15.8-millionduring the year, which included aR12-million long-term retentionbonus and a R2.5-million termi-nation benefit — meaning he wa spaid both to stay and to go away inthe same year.
Termination benefits signifi-cantly boosted a number ofsalaries. Mondi paid Paul Holling-worth almost R19.5-million to go,while Sasol paid Trevor MundayR16-million. In fact, of SA’s 100biggest earners of 2008, close to 20are no longer working at the com-panies who felt the need to paythem so handsomely to retaintheir services.
Executives earn performancebonuses in good and bad times.The best example is Larry Lip-schitz, the former CEO of SuperGroup, who earned R10.9-millionincluding a R5-million perfor-mance bonus in what was one ofthe company’s worst years ever.He finally left it struggling forsurvival. While he was still beingpaid performance bonuses, in-vestors lost most of their money.
The earnings list, (available indetail on Page 4), reflects re-search into the top executives anddirectors of all of SA’s listed com-panies. The Rich List, (on Page 2),is a comprehensive report on SA’srichest people whose wealth is amatter of public information.
The economic crisis has been ablow to the fortunes of SA ’swealthiest, almost without excep-tion. Lakshmi Mittal, althoughnot a South African, remains atthe top through his holding inArcelorMittal SA. At this timelast year, this holding was worthR45.7-billion. This year it is worthR16.95-billion, but he retains hisposition. This is just a fraction ofwhat he is worth through hisother international holdings.
Patrice Motsepe, the richestSouth African and the second-ranked person in the SA Rich List,was worth R22-billion last year,and is now worth R14.25-billion.He has, however, made some re-covery as his wealth was R9.7-billion in mid-November, at thepeak of the economic crisis.
Between March and Novemberlast year, SA’s 10 richest peoplelost a total of R61.5-billion. Theirwealth was R114.6-billion lastMarch. By mid-November theirwealth plunged to R54.1-billion.
The Rich List published today
shows that there has been only aslight recovery between then andMarch this year, the cut-off datefor the research, as their col-lective wealth inched up toR58.5-billion.
Among the wealthiest, NickyOppenheimer follows Motsepe atnumber three, with wealth ofR5.4-billion, down from R16-bil-lion last year. This only includeshis holding in Anglo American;
the family’s wealth is largely heldin De Beers.
Christo Wiese, ranked fourth,is one of the few in the top rankswhose wealth increased, fromR4.3-billion to just over R5-billion,largely due to strong performersShoprite and PSG Group.
The Ackerman family’s Pick nPay interest was static at R3.3-billion. The Elephant Consor-tium, ranked sixth, whose invest-
ment in Telkom is valued atR3.2-billion, and Royal BafokengHoldings, ranked 22nd, are notindividuals but are still includedon the list.
Rembrandt Trust, essentiallythe Rupert family, slips fromfourth to seventh, although thevalue, at R3.1-billion, is un-changed. The Ruperts and Op-penheimers were once the richestin the country by far.
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Graphic: FIONA KRISCH
Chip Goodyear
Norbert Platt
Paul Adams
Brett Levy
Stephen Koseff
Bernard Kantor
Mark Levy
Brian Bruce
Graham Mackay
Glynn Burger
Tim McClure
Miles Dally
Johann Rupert
Marius Kloppers
Carl Grim
Richard Lepeu
Prakash Desai
Diane Radley
Paul Harris
Brian Joffe
Brad Mills
Paul Hollingworth
Jim Sutcliffe
Nicandro Durante
Pieter Cox
Julian Roberts
Sifiso Dabengwa
Cynthia Carroll
Malcolm Wyman
Paul Rayner
Jabu Mabuza
Jannie Mouton
Ian Farmer
Trevor Munday
Robert Venter
Jeff Wright
Phuthuma Nhleko
Alan Tapnack
Ben Stevens
Reuben September
Peter Cooper
David Brown
Pat Davies
Gavin Soll
Steve Booysen
Walter Ballandino
Steve Phiri
David Hathorn
Sean Flanagan
Mark Cutifani
Michael Mark
Whitey Basson
Dennis Gammie
Peter Surgey
Alain Perrin
Tom Boardman
Jens Montanana
Bob Carpenter
Kgomotso Brian Mosehla
Chris Cory
Bruce Campbell
Anthony Stewart
Phil Crous
Chris Otto
Dirk Van Staden
Brett Dawson
Duncan Wanblad
Abdul Mahomed
Jacko Maree
Peter Oswald
Alan Ferguson
René Médori
Jonathan Nicholls
Grant Pattison
David Redshaw
Sizwe Nxasana
Johan Van Zyl
Nolitha Fakude
Stuart Murray
Izak De Wet Goosen
Papi Molotsane
Frank Thompson
Venkat Venkatakrishnan
Markus Jooste
Louis Von Zeuner
Michael Kilbride
John Bortolan
Richard Inskip
Jan Rupert
Craig Venter
Gerald Riemann
Marius Heyns
Clive Thomson
David Rennie
Larry Lipschitz
Hubert Brody
Aubrey Karp
David Robinson
David Kneale
Neil Cumming
BHP Billiton plc
Compagnie Financière Richemont
British American Tobacco plc
Blue Label Telecoms
Bidvest GroupInvestec LtdInvestec plcJSE
Investec plcPhumelela Gaming & Leisure
Blue Label Telecoms
Murray and Roberts Holdings
SABMiller plc
Investec LtdInvestec plc
Grindrod
Rainbow Chicken
Compagnie Financière Richemont
BHP Billiton plc
Aveng
Compagnie Financière Richemont
ElementOne (prev. Johnnic Communications)
Allied Electronics Corp.
Discovery HoldingsFirstRandRemgro
Bidvest Group
Lonmin plc
Mondi plc
Nedbank GroupOld Mutual plc
British American Tobacco plc
Sasol
Old Mutual plc
MTN Group
Anglo American plcAnglogold Ashanti
SABMiller plc
British American Tobacco plc
Hosken Consolidated Investments
Capitec Bank HoldingsPSG GroupRemgroSteinhoff International
Lonmin plc
Absa GroupBarloworldReunertSasol
Allied Electronics Corp.
Afgri
MTN Group
Investec LtdInvestec plc
British American Tobacco plc
Telkom Group
Discovery HoldingsRMB Holdings
Impala Platinum HoldingsSimmer and Jack Mines
Sasol
Clientele
Absa Group
Highveld Steel & Vanadium Corp.
Impala Platinum HoldingsMerafe ResourcesZurich Insurance Co. SA
Mondi plc
Murray and Roberts Holdings
Anglogold Ashanti
Truworths International
Shoprite Holdings
Aveng
Barloworld
Compagnie Financière Richemont
Nedbank Group
Datatec
Assore
Mvelaphanda Resources
Assore
Alexander ForbesMutual & Federal
Grindrod
Assore
Capitec Bank HoldingsPSG Group
Exxaro Resources
Dimension Data Holdings plc
Anglo Platinum
Imperial Holdings
Standard Bank Group
Mondi plc
Lonmin plc
Anglo American plc
Old Mutual plc
Massmart Holdings
Allied Electronics Corp.
FirstRand
SanlamSantam
Sasol
Aquarius Platinum
Afgri
Telkom Group
Advtech
Anglogold Ashanti
PSG GroupSteinhoff International
Absa Group
Exxaro Resources
Nampak
Woolworths Holdings
Compagnie Financière Richemont
Allied Electronics Corp.Allied Technologies
Imperial Holdings
Basil Read
BarloworldPretoria Portland Cement
Grindrod
Super Group
Imperial Holdings
Shoprite Holdings
Aveng
New Clicks Holdings
Nampak
Former CEO
CEO
CEO
Joint CEO
Non-execCEOCEOFormer Non-exec
Exec MDNon-exec
Joint CEO
CEO
CEO ExecExec
Exec
CEO
Exec Chairman
CEO
Former CEO
Execl
Former exec
Former Exec
Former Non-execCEONon-exec CEO
Former CEO
Former Exec
Former Non-exec Former CEO
Exec
Non-exec Chairman
CEO
Exec CEOFormer Non-exec
Exec Financial
Former Director
Exec
Former Non-exec ChairmanExec ChairmanFormer Non-execNon-exec
CEO
Non-execFormer Non-execNon-execFormer Exec
CEO
Former MD
CEO Exec Exec
Exec
CEO
Non-exec Exec
CEOFormer Non-exec
Exec
Exec
Former CEO CEO
Non-execCEONon-exec
CEO
Exec
CEO
CEO
CEO & MD
Exec Financial
Exec
Exec
CEO
CEO
Exec Deputy Chair Former Exec
CEO CEOFormer MD
Exec
Exec Non-execExec
Exec
CEO
Former Exec
Exec
CEO
Exec
Exec
Exec
Former Exec
CEO
Exec
Exec
CEONon-exec
Exec
CEO
Former Exec
Former CEO
CEO
Exec
Non-execCEO
Exec
Former Exec
CEO
Former Exec
Exec
Exec CEO
Exec
CEO
CEOFormer Non-exec
Exec
CEO
CEO
Exec
Exec
CEO
Former Exec
HEPS increase
/decrease 2007/2008
Salary (R'000)
Total benefits (R'000)
Termin-ation
benefit (R'000)
Perfor-mance bonus
(R'000)
Other benefits (R'000)
20.0%
18.4%
11.0%
97.9%
10.1%-3.3%-3.3%56.4%
-3.3%-22.0%
97.9%
69.2%
19.5%
-3.3%-3.3%
94.5%
7.8%
18.4%
20.0%
72.2%
18.4%
130.8%
32.5%
4.1%-8.9%16.5%
10.1%
100.5%
-48.6%
-4.2%-55.2%
11.0%
50.1%
-55.2%
43.0%
4.3%96.1%
19.5%
11.0%
34.7%
16.5%-43.2%16.5%31.7%
100.5%
4.6%-48.0%139.3%
50.1%
32.5%
18.7%
43.0%
-3.3%-3.3%
11.0%
-4.4%
4.1%-6.1%
57.4%-29.4%
50.1%
27.8%
4.6%
81.9%
57.4%320.0%-30.5%
-48.6%
69.2%
96.1%
18.9%
53.7%
72.2%
-48.0%
18.4%
-4.2%
11.8%
317.7%
107.7%
317.7%
-113.4%
94.5%
317.7%
16.5%-43.2%
-100.0%
65.1%
7.1%
-49.4%
-1.9%
-48.6%
100.5%
4.3%
-55.2%
17.3%
32.5%
-8.9%
-58.9%-35.3%
50.1%
26.3%
18.7%
-4.4%
25.6%
96.1%
-43.2%31.7%
4.6%
-100.0%
-4.0%
-9.5%
18.4%
32.5%22.2%
-49.4%
68.4%
-48.0%7.6%
94.5%
-89.3%
-49.4%
53.7%
72.2%
26.7%
-4.0%
6 6666 666
51 96651 96620 27320 273
6 7646 7644 629
––
4 629–
5 2945 294
–5 8615 8613 1193 119
14 58614 586
3 142–
3 1422 0012 0013 4183 418
16 64716 64712 57812 578
2 5252 525
28 77328 773
1 9291 9292 7232 7234 495
–4 495
–6 6926 6928 9238 9237 4067 406
11 440–
11 4407 3907 390
––
8 8238 8233 7713 771
15 01515 015
–8 7958 7959 2199 2191 9971 9972 897
–2 897
––
5 0275 027
–––––
4 4394 4393 4303 4306 4986 4983 694
–3 6947 5637 5632 4542 4542 211
–2 2114 8844 884
–5 7585 7581 3351 3355 5565 556
17 25217 252
2 299–
2 299–
13 85413 854
2 2592 2599 5139 5133 7123 712
13 15813 158
1 8451 8452 2802 280
16 35016 350
4 1044 1047 8907 8903 2323 2321 1931 1932 9502 9502 0692 069
–1 8051 8052 5922 5922 172
–2 1722 9862 9865 0635 0631 9661 9663 4233 4234 5474 547
11 44011 4406 0426 0429 4389 4387 5087 5082 5502 5502 9302 9304 0654 0654 4924 492
–2 9252 9255 8425 8422 1252 125
12 03612 036
1 6391 6395 5855 585
10 690–
10 6903 3863 3861 9211 9214 2054 2052 1042 104
11 03811 0383 4073 407
–4 2084 2082 6862 6863 8733 873
–1 9021 9024 8714 8713 7873 7872 0532 0534 5614 5614 0544 0541 7341 734
3 2003 200
739 739
1 5031 503
260 260
1 055––
1 055–
539 539
– 263 263 932 932
5 3775 377
612–
612 619 619 413 413
17 51417 514
5 5915 591
444 444 696 696 379 379 521 521
2 705–
2 705–
1 0461 046
18 27118 271
286 286
4 404–
4 4043 9923 992
––
3 0893 0891 0361 0362 8312 831
–4 1694 1693 4533 4531 4841 484
81–
81––
16 56516 565
–––––
717 717
1 0601 060
460460441
– 441
1 3811 381
––
493–
4931 0591 057
21 5571 557
30 30
456 456510
510 484
– 484
–
431431
525 525
1 5011 5011 0071 0073 4823 482
405 405
9 3909 390
––
309 309
1 5971 597
977 977
––
920 920280
280–
627 627 811 811
81–
81 599 599 233 233 235 235 752 752
1 0181 018
4 4
7 2927 292
787 787
2 5882 588
445 445 616 616 683 683684
684–
1 0371 037
323 323 831 831
26 26
511 511
1 0041 004
718–
718 335 335 571 571 267 267 261 261 520 520 721 721
–1 2091 209
334 334
1 2191 219
– 718 718 962 962 689 689 722 722
1 2131 213
450 450 149 149
–––––––––––––––
––––––––––
––––––––––––––––––––––
19 46619 466
––––––––––––
–––––––––––––
16 165–––
16 165––––––––––––––––––––––––––
––––
–––––
––––––––––––––––
2 4842 484
––
13 00013 000
––
–––––
3 1283 128
–––––––
–
–––
––––––––––––––––––––––
–––––
5 4145 414
–––––––––––––––––
–
––––––––––
6 9996 999
––
29 39829 398
3 3603 360
41 470––
41 470–
41 47041 470
–3 3603 3606 2506 250
22 96622 96634 976
–34 976
2 4202 4202 6272 627
––
13 54413 544
3 0003 000
––
3 0003 000
––
8 200–
8 200–
8 5458 545
–––––––
13 33313 333
––
6 9936 9936 2506 2504 5624 562
–9 1529 1529 2619 2611 9001 9004 500
–4 500
––––
4 360–––
4 3604 3314 331
10 83110 83113 00013 00010 725
–10 72510 42910 429
3 4363 4364 750
–4 750
427 427
–6 3146 314
17 60517 60512 00012 000
––
1 962–
1 962–
3 3213 3213 0003 0005 8775 877
10 40010 400
––
2 4462 4462 1322 132
––
6 0006 0006 7006 700
11 84311 843
––
11 68211 682
–––
2 2402 240
11 47811 4782 000
–2 0005 7725 7729 1139 1132 4232 4231 6751 6758 5168 5162 4022 402
––
2 9742 974
––
3 8803 8802 2882 2888 1008 1007 5007 500
–2 3092 3095 6765 6767 1467 146
––
1 4851 4853 6133 613
–––
8 0008 0003 5573 5571 0001 000
––––
2 6592 659
–6 0216 0218 3338 3334 3484 348
–2 4202 4205 0635 0631 7001 7002 2502 2504 9174 9171 8011 801
––
14 09514 095
––––
40 00040 000
––––––––
40 00040 000
––
4 4344 434
–––
32 46532 465
––––––––––
10 65010 650
––––––––––––––––––––––––––––––––––––––––––––––
2 7282 728
–––––––
13 21913 219
–––
1 0591 059
–––––––––––––
––––––
1 5451 545
––––––––––––––
12 20912 209
––––––––––––
3 3––––
741 741
––––––––––
6 1256 125
–––––––––––
445 445
–––––––––––
2 2––
9 2249 224
––––––––––––––––––––––
4 2074 2077 9827 982
Gains on
shares (R'000)
Fees/levy pay
(R'000)380 639380 639
––––––
2 264–
7871 477
–2 1402 140
–––
37 43037 430
––
7 2112 6144 5972 3522 352
33 20833 208
––––
25 41025 410
––
13 37813 37825 29425 29412 353
–12 353
–11 50311 503
––––
9 929–
9 929––
20 29720 297
4 8804 880
12 58512 585
–––––––
16 54516 54513 714
1 25312 461
–––––––––
11 22011 2202 4882 488
––
5 0571 3703 687
––––
11 469–
11 46911 4479 2692 1785 3955 395
––––––
12 540–
12 540–
––
11 34311 343
––––––
11 94311 9432 8052 805
––
5 7835 783
–––––––––––
10 57510 575
––
10 306–
10 3062 2302 230
––
9 5659 5657 5537 553
––––––––
3 0423 042
––
7 1157 115
–––––
6 2586 258
––
1 5731 573
––
8 4128 4121 8371 837
–––––
264 264
6 1336 133
––––
4 765–
4 765––––
1 8761 876
–5 8805 880
––
4 6664 6665 7925 792
––––
599 599
––––––––
106 70
––
36 78
– 78
––
49 49
–––––––––––––––––––––
268 93
– 175
––––––
235 235
–––
3 7503 750
–––––––––––––
46888
––
380––
908 720 152
36––––––––––––––
170 170
– 167
– 167
––––
141 141150
150 432 251
– 181
––
49 49
––––––––––––––––
96 96
––
96 96
–––––
96 96
175 175
––––––––––––––––––––––––––––––
563 563
––––––––
625 75
550 160 160
––––––––––––––––––––––––––––––––
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Name & company Designation
29 74629 746
––
31 21031 21015 91015 91052 449
541 392
50 871 133
51 92351 851
7213 24513 24599 18199 18139 20039 20043 944
2 95740 98723 77323 77310 31510 315
––
17 38817 38834 76134 761
––
4 4744 4744 4904 490
25 867 138
25 582 147
26 90326 90319 16619 16619 33419 33429 583
27029 313
––
8 2978 297
21 68921 68931 51931 51937 36737 338
2920 50620 50620 22020 220
8 2308 230
23 098500
22 129 99
3707 9027 902
33 250 357 211
–32 682
7 3117 311
12 05112 05116 25716 25726 214
1 14825 066
––––
7 506–
7 50610 74610 644
10220 84620 84618 30918 30918 77418 774
6 9296 9294 668
174 471
180
34 41534 415
4 7004 700
18 45818 45813 57213 57212 63812 63816 27616 276
9 8129 812
––
24 86524 86513 23613 236
9 6249 6244 2354 2359 2609 2601 839
–1 839
15 97515 975
8 6808 680
15 550 149
15 4016 0926 092
13 25813 25810 45310 453
9 1899 189
32 39032 390
––
3 0083 008
14 63014 63015 17615 17613 45313 453
6 7006 700
13 43313 43313 75513 755
–4 7584 7589 2479 2475 9745 9743 9263 9264 9114 9117 2957 2959 751
759 676
13 64213 642
6 0506 0508 6938 6935 2355 235
––
7 0555 6821 3738 4548 454
11 28511 28513 04413 005
3915 79815 798
8 4018 4014 6024 6025 2925 2927 2577 2575 6505 6505 0255 025
Total 2007
(R'000)
Total 2008
(R'000)
% salary increase
from 2007
HEPS increase
/decrease 2007/2008
Salary (R'000)
Total benefits (R'000)
Termin-ation
benefit (R'000)
Perfor-mance bonus
(R'000)
Other benefits (R'000)
Gains on
shares (R'000)
Fees/levy pay
(R'000)
Name & company Designation Total 2007
(R'000)
Total 2008
(R'000)
% salary increase
from 2007
411 598
52 705
51 174
50 384
70787
48 63136
49 44478
49 484
47 780
47 362
2 61443 327
39 857
39 666
34 161
31 713
31 379
29 469
29 337
28 538
9327 753
175
27 786
27 194
27 158
23525 774
24 715
24 047
23 784
23 642
22 408 –
22 115
21 933
21 926
1 34119 939
– 380
21 592
720 152
3620 525
20 707
20 537
19 958
1 37018 547
19 373
19 109
17018 923
16 6962 347
19 024
18 970
18 153
17 912
25117 285
181
17 606
17 176
16 891
16 664
16 640
16 639
16 607
16 350
16 196
16 186
16 148
15 886
15 648
15 349 –
15 247
14 977
17514 559
14 719
14 408
14 188
14 144
14 081
13 846
13 334
13 199
13 138
13 000
12 949
12 848
12 676 –
12 529
12 404
12 120
12 062
12 046
12 039
7511 958
11 881
11 729
11 604
11 589
11 558
6 7874 765
11 438
11 353
11 316 –
10 920
10 896
10 842
10 817
10 691
10 512
10 463
411 598
52 705
51 174
50 384
49 524
49 522
49 484
47 780
47 362
45 941
39 857
39 666
34 161
31 713
31 379
29 469
29 337
28 538
28 021
27 786
27 194
27 158
26 009
24 715
24 047
23 784
23 642
22 408
22 115
21 933
21 926
21 660
21 592
21 433
20 707
20 537
19 958
19 917
19 373
19 109
19 093
19 043
19 024
18 970
18 153
17 912
17 717
17 606
17 176
16 891
16 664
16 640
16 639
16 607
16 350
16 196
16 186
16 148
15 886
15 648
15 349
15 247
14 977
14 734
14 719
14 408
14 188
14 144
14 081
13 846
13 334
13 199
13 138
13 000
12 949
12 848
12 676
12 529
12 404
12 120
12 062
12 046
12 039
12 033
11 881
11 729
11 604
11 589
11 558
11 552
11 438
11 353
11 316
10 920
10 896
10 842
10 817
10 691
10 512
10 463
1283.7%
64.0%
216.7%
29.6%-43.5%
-4.4%-72.9%
-4.6%8.3%
273.6%
-51.8%
20.8%
-11.6%5.7%
67.7%
284.5%
82.4%
-9.7%
555.7%
535.6%
-32.6%8.5%
19.0%
3.3%
41.9%
40.5%
-13.0%-12.1%
189.8%
9.7%
-25.0%
-40.0%-100.0%
7.8%
8.5%
166.4%
168.2%-9.9%
-100.0%2.7%
173.3%
101.4%-28.0%
-37.2%
183.2%
70.4%
22.8%
19.3%-26.0%
152.1%
56.9%2200.5%
-8.7%
3.6%
-3.3%
158.5%
1376.5%286.6%
0.6%
-48.8%
265.4%
-8.5%
22.8%
31.7%
2.2%
69.3%
-34.9%
22.3%
67.8%
275.1%
69.0%
-100.0%
-4.6%
72.5%
17.4%-5.5%
141.6%
8.7%
35.7%
53.9%
-56.5%
343.2%
-9.8%
-13.4%
-3.4%
93.3%
-4.4%
-7.8%
163.3%
34.1%
102.9%
207.2%
145.3%
65.0%
0.0%23.6%
-12.9%
93.9%
33.5%
121.4%
19.4%247.1%
35.3%
0.6%
-13.0%-100.0%
-30.9%
29.7%
135.6%
104.4%
47.3%
86.1%
108.2%
THE BIG EARNERS
November 1 2009
HOW THEY MAKE IT... HOW THEY SPEND IT
RICH LISTRICH LIST 5THE GLOBAL RECESSION HAS KNOCKED CRUCIAL ZEROES OFF THEIR WORTH
The rare billionairesThere are 10 fewer ofthem in SA this yearSIMPIWE PILISO
THE financial crisis tookits toll on South Africa’srichest people, wipingout almost half the value
of their shares.Plunging stock markets,
volatile commodities and the col-lapse of several financial insti-tutions around the world, saw thevalue of shares owned by thecountry’s top 10 wealthiest in-dividuals plummet from R114.6-billion to R58.5-billion.
Research staff of Who OwnsWhom analysed holdings of allJSE-listed companies — the onlyquantifiable way of measuringwealth based on publicly avail-able documents. They could notinclude property, cash, offshoreinvestments or money held withfund managers in their calcu-lations, so one can assume thatpeople on the list are much richerthan they appear.
Entrepreneurs, sports stars,holders of patent rights and own-ers of unlisted companies may beas rich as people on the list, but itis impossible to determine theirwe a l t h .
In just eight months last year,between March and November,the combined worth of the coun-try’s 10 richest people plummet-ed by a staggering R61.5-billion.
By last November the com-bined wealth of the 10 individualsstood at R54.1-billion, comparedwith R114.6-billion on March 31.
According to the latest RichList, released today, Indian steelmagnate Lakshmi Mittal, who isofficially the richest man in thecountry, remains at the top of thelist, despite his shares in steel-maker ArcelorMittal SA losingmore than half their value.
The value of his shares in thesteel giant dropped from R45.7-billion to R16.95-billion in just oneye a r .
The India-born businessman,who tops the list for the fifthconsecutive year, has been in-cluded on the list by virtue of hisshareholding in ArcelorMittalSA. His wealth represents thevalue of his investment in SAonly. Mining tycoon Patrice Mot-sepe, ranked second on the list,watched the value of his share-holding in African Rainbow Min-erals and Sanlam dive from R22-billion to R14.2-billion.
Nicky Oppenheimer, chairmanof the world’s biggest diamondproducer, De Beers, saw hisshareholding in Anglo Americandrop from R16-billion to R5.3-billion.
In sixth position on the RichList is the controversial ElephantConsortium, an empowermentvehicle that acquired 6.7% ofTelkom for R3.5-billion in 2005,and at the time had among itsbeneficiaries former civil ser-vants, politicians and business-men.
But, like scores of wealthy in-dividuals hit hard by local andinternational financial turmoil,the Elephant Consortium, head-ed by Andile Ngcaba and GloriaSerobe, has lost about R783-mil-
lion of its value since March lastyear. While there were 26 bil-lionaires — with a combined for-tune of R118-billion — last year,today there are only 16 in SouthAfrica and their combined wealthis R67.3-billion.
The former chairman of theMvelaphanda Group, TokyoSexwale, who now holds the gov-ernment post of minister of hu-man settlements, just made thecut-off with R1.2-billion worth ofshares.
The global financial collapsehelped two billionaires gain entryinto the exclusive list of the coun-try’s 10 wealthiest individuals.
Laurie Dippenaar, who holdsshares worth R1.9-billion in bank-ing giant FirstRand and RMBHoldings, is now ranked 10th,compared with 12th last year.
Pharmaceutical boss StephenSaad, who was ranked 17th lastyear, with R1.6-billion worth ofshares in Aspen PharmacareHoldings, is now ranked ninthwith R2.2-billion.
While Dippenaar and Saad laidclaim to a place on the top 10,Bruno Steinhoff and electronicsbillionaire Bill Venter, whofounded the Altron Group with
capital of R12 000 in 1965, droppedin the rankings.
Steinhoff’s shareholding inSteinhoff International Holdingsdropped from R2.8-billion to R1.6-billion. He is now ranked 12th.
The financial crisis cost Ven-ter, who is ranked 13th, half thevalue of his shares in Altron andAltech. His fortune in sharesdropped from R3.2-billion to R1.5-billion.
Cellular operator MTN’s chiefexecutive, Phuthuma Nhleko , os-tensibly experienced one of thebiggest reversals of fortune, slip-ping to number 27 on the list fromnumber 11, as the value of hisshares in the MTN group sankfrom R2.3-billion to R637-million,but this reflects the unwinding ofNewshelf shares in MTN.
Families in the retail sectorseem to have dodged the melt-down. Pick n Pay’s Ackermanfamily, ranked ninth on the listlast year, are now positionedfifth. Their R3.2-billion share-holding in Pick n Pay Holdingshas barely budged in the 12months. Pepkor’s Christo Wiese,listed fourth — from fifth position— saw his fortune jump fromR4.3-billion to R5-billion.
Some might consider our strict policy of discretion a hindrance. After all, advertising would be so much easier if we
could mention just a few of our many wealthy and influential clients. But then Citadel has never done anything the
easy way. We prefer to do it the right way, which is to be discreet at all times. Not that we’re paragons of virtue. It’s
just that our wealthcare managers can only do their job of providing highly tailored, efficient and effective solutions
to our clients if they know about their dreams and ambitions, their families and their lifestyles; all of which requires
an atmosphere of openness and trust. It’s an approach that has attracted many people you may have heard of, but
not from us. And that’s the way we think it should be.
Port Elizabeth: 041 394 1300 Johannesburg: 011 722-7600 Pretoria: 012 470 2500 Claremont: 021 670 9100 Tyger Valley: 021 940 7200 Durban: 031 560 7000 www.citadel.co.za
Citadel is an authorised financial services provider. Member of the Group.
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OUR CLIENT LIST READS LIKE
THE WHO’S WHO.
BUT WE PREFER NOT TO SAY WHO.
November 1 2009
HOW THEY MAKE IT... HOW THEY SPEND IT
RICH LISTRICH LIST6
What a way to goFor some, poor performance seems to be a highway to riches
GOLDEN HANDSHAKES ARE CLEAR EVIDENCE OF POOR GOVERNANCE
ROB ROSE
AS the debacle at the SABroadcasting Corpora-tion succinctly illus-trates, the quickest
route to a swollen bank account isto be handed a pink slip.
Former SABC boss Dali Mpofuwas given a R12-million “goldenh a n d s h a ke ” despite leaving thebroadcaster in far worse shapethan he found it.
This continues a fine traditionthat reached an arguable highpoint in 2002 when Coleman An-drews was paid R256-million toleave South African Airways.
By comparison, the “termina-tion of contract” benefits paid toKhaya Ngqula to leave the airlinelast year are small change.
While it is tempting to labelthis a disease of state-ownedcompanies, the private sector hasbeen only marginally less gen-erous with the departing.
The largest on termination
payout was R19-million for PaulHollingworth, the former finan-cial director of SA- and London-listed paper company Mondi, aspart of his R27-million salary.
According to Mondi, Holling-worth left because the financeministry stipulated that the fi-nancial director must be based atthe South African head office.Hollingworth decided not to re-locate, so he resigned.
Mondi’s annual report saidthat Hollingworth was given apayment “reflecting his salary,car allowance and pension con-tribution for his 12 months’ noticeperiod”.
Shareholders generally do notlike “golden handshakes” at all.
At Sasol’s annual meeting l a stDecember, pointed questionswere asked about the R16.1-mil-lion paid to former executiveTrevor Munday after he left inmid-2007.
Sasol’s annual report said thiswas a restraint of trade payment
to Munday, which boosted hisoverall package last year to R20.5-million.
CEO Pat Davies explained thatMunday had “strategic and tech-nological” knowledge, so it“wo u l d n ’t have been in our in-terests if he went to work for ac o mp e t i t o r ”.
Perhaps Davies has a point, butthat looks like a particularlyhandy “restraint of trade pay-ment”.
Neil Cumming, the formerhead of the perpetually under-performing packaging companyNampak, also scored by resign-ing.
Last year, Cumming was paidR10.4-million (more than doublehis 2007 salary), including R7.9-million mostly to compensatehim for an “early retirement”, a“retirement gratuity”, and a “re-straint of trade” p ay m e n t .
Jeff Wright’s departure aftereight years as CEO of agricul-tural company Afgri saw him
take only R2.7-million in “otherbenefits”, which included leavepay. Not that anyone should feelsorry for Wright, given that hewas paid R20.5-million last year,and is not earning that badly upat Country Bird either.
Rick Reato, former CEO of theSouth African arm of Arcelor-Mittal Steel SA, may have onlybeen shifted to the company’sLondon office, but he still man-aged to secure a R2-million ter-mination payment.
Signing-on bonuses are handytoo. A broker at AlexanderForbes, Bruce Campbell, was paidR13-million as a sign-on fee whenhe joined in 2007 as executivechairman. After much turbulencehe replaced Peter Moyo, who hadquit citing “irreconcilable differ-ences” with the board.
What is worrying is that gold-en handshakes seem to be aspopular as ever, even if some ofthem are now being cloaked un-der the guise of “restraint of
trade” p ay m e n t s .In this year (not included in
this year’s rich list), Steve Booy-sen was paid a R19.1-million gold-en handshake for leaving Absabefore his contract expired. AsBooysen recently spoke about histesty relationship with Absachairman Gill Marcus, this is aclear sign that bad relations atthe board can be expensive forshareholders.
But the popularity of goldenhandshakes is surprising, despiteclear evidence that it is poorg ove r n a n c e .
The new King III report s aysthat “balloon payments on ter-mination do not generally meetthe requirements of a fair andbalanced remuneration policy”.
After all, any director whoknows that poor performancewill net him a windfall is notincentivised to perform to hispeak.
Time for the sordid practice tost op .
DALI MPOFU NEIL CUMMING TREVOR MUNDAY RICK REATO
All pay, but no work Tapping the mother lode Taking their fair shareSA ’S highest paidnonexecutive director,Pieter Cox, took homeR24-million from Sasollast year without havinga day job at the group.
His take-home payincludes R3.7-million inchairman’s fees andR20.3-million fromcashing in some shares.
There are many peoplewho earn millions fromcompanies withouthaving to clock in eachmorning.
Cyril Ramaphosaearned R8.75-millionfrom six companies, withthe bulk coming from hischairmanship of Mondi.None of his earnings in
2008’s Rich List are fromthe company where hedoes have a day job —Shanduka.
Multiple boardmember David Nurekearned R6.85-millionfrom eight companieswhere he holdsnonexecutive positions.This includes aR3.5-million gain onClicks shares (so muchfor nonexecutives beingindependent).
Bruno Steinhoff,nonexecutive at SteinhoffInternational, took homeR9.8-million last year,including a R6.9-millionsalary, and the rest infees. — Marcia Klein
MOST of SA’s billionaireshave made it rich in miningand commodities, if onelooks at the top ranks of theRich List. Also high up arepeople who have made it inthe retail sectors, financialservices, pharmaceuticalsand telecommunications.
The top three — LakshmiMittal, Patrice Motsepe andNicky Oppenheimer —have all made their for-tunes in mining and com-modities. Christo Wiese,ranked fourth, has a num-ber of investments, but thebulk of his wealth is inretail through Shoprite.The Ackerman family,through Pick n Pay, are j u stbehind.
In healthcare, Aspen andDiscovery have made somepeople very wealthy. As-pen’s Stephen Saad andGus Attridge are ranked9th (R2.4-billion) and 19th(R821-million) on the RichList, while Discovery’sAdrian Gore and BarrySwartzberg are ranked14th (R1.4-billion) and 21st(R730-million). Among thebankers, Laurie Dippenaarand G T Ferreira, throughFirstRand and RMB, areranked 10th and 11th withR1.9-billion and R1.8-billionrespectively. The othermember of the FirstRandtrio, Paul Harris, is ranked24th with R666-million. —Marcia Klein
IT HAS been profitable toleave poorly paid politicsfor business.
A number of former po-litical bigwigs who havecrossed the floor featureon this year’s Rich List.
The most notable isCyril Ramaphosa, whoseinvestments in StandardBank, Bidvest and Assoreplace him 17th on the list,worth R988-million.
Just above him is TokyoSexwale, who has re-turned to politics — andwho can afford to, becausehis investments in Mve-laphanda (Group and Re-sources) were worth R1.2-billion at the end ofMarch.
Among other former no-table politicians, Saki Ma-cozoma had shares in Stan-dard Bank worth R392-mil-lion. Jakes Gerwel’s sharesin Brimstone were worthR58-million while ValliMoosa’s Sun Internationalshares, as well as smallerholdings in Angloplat andSanlam, were worth R56-million.
Bulelani Ngcuka’s sharesin Buildmax and Basil Readwere worth R20-million.
Alistair Ruiters’s sharesin Metmar were worth R33-million.
Lulu Gwagwa’s shares inSun International and VoxTelecom were worth R49-million. — Marcia Klein
November 1 2009
HOW THEY MAKE IT... HOW THEY SPEND IT
RICH LISTRICH LIST 7GLASS CEILING MUCH IN EVIDENCE ON RICH AND EARNINGS LISTS
Big paydays still eluding women
JANE STEINACKER
SOUTH African women arestill stuck in the corporatekitchen, with only threemaking this year’s S u n d ay
Times Top 100 earnings list.Diane Radley from Altron is 18th
on the list (earning R28.5-million,largely made up of R2.7-millionsalary and R25.3-million on sharegains), followed by Cynthia Carrollat 28th, with R22-million. Carrollwas ranked 11th last year, when sheearned more than R37-million.
The only other high-earningwoman in the Top 100 earners wasSasol’s Nolitha Fakude, who tookhome R12.5-million last year, a highsalary for a company executive.
Another high-earning female ex-ecutive at Sasol is Christine Ramon,who earned R6.1-million.
Nonkululeko Nyembezi-Heita,one of the few women who is CEO ofa major company, ArcelorMittal SA,earned R4.9-million — a salary notanywhere near putting her on thelist of high earners.
At parastatals, Transnet paid itsformer CEO Maria Ramos R5.8-mil-lion last year. Her salary is set tosoar this year now that she is atAb s a .
Among SA’s richest people, thereis only one woman in the Top 100.
SA ’s richest woman, according tothe Rich List, is the relatively un-known Sharon Wapnick, whose in-vestments in Octodec Investmentsand Premium Properties are valuedat R195-million, placing her 79th.
Antoinette Sedibe’s investmentin Keaton Energy, valued at R101-million, places her second amongwomen, but only 124th on the list.
Mamphela Ramphele is worthR93-million through the value of herMedi-Clinic shares, and Mvelaphan-da’s Yolanda Cuba is worth R85-million through her shareholding inSteinhoff International.
The number of women rising tostronger commercial positions isgrowing, but at a snail’s pace.
The South African Women inCorporate Leadership study con-ducted by the Business Woman’sAssociation (BWA) shows that thepercentage of executive manage-ment posts held by women has in-creased from 14.7% in 2004 to 25.3%.
According to BWA presidentBasetsana Kumalo: “In real terms,this has grown from 739 to 1 227wo m e n , ” of which only 13 hold po-sitions as CEOs and chairmen ofboards.
While the study showed an in-crease in top positions held by wom-en, it also showed that these womenwere being paid significantly lessthan men and that female repre-sentation on boards was still low.
The study further showed thateven though board representationhad increased by 1.4% since 2007,this was actually a downward trendas the number of company boardshad increased by 17 in the past year.There were 318 in 2007 and 335 in2008.
This was just not good enough,said the BWA’s Yvette Montalbano.
Just not goodenough— B WA
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November 1 2009
HOW THEY MAKE IT... HOW THEY SPEND IT
RICH LISTRICH LIST8FIVE OF THE TOP WALLET-WHACKING WHEELS OF FORTUNE
Simply the bestHead-turners with all the power and luxury money can buy
JUSTICE MALALA
DON’T go to the MichelangeloHotel and think you have beenplaces. That’s crass. So is the fauxsophistication of Auberge Michel— t h at ’s for people on govern-ment expenses, like PaulM a s h at i l e .
Show some class. Go here:1. Assaggi: There are probably
more millions per table at thisJohannesburg eatery than youwill find anywhere else in thecountry. The food is fantastic (trythe chicken or the spaghettiniaglio olio, and start with the zuc-chini fritti).
2. The Fisherman’s Plate: Thecrab curry is, simply, heaven.
3. The Tasting Room: Be sure tobook into the Quartier Francais,home of this restaurant. Th e nsettle down to the eight-coursetasting menu paired with localwines. A meal to savour and anexperience to treasure.
4. Reuben’s: Unassuming, un-derstated, but heck, the food is somouth-watering, so well pre-pared, it is no wonder it flirts withbeing one of the best in the coun-try.
5. Mariana’s Home Deli: To geta table in the next three monthsyou will have to know someonewho knows someone. But whenyou do finally get there, you willexperience one of the most grat-ifying dining experiences in SA.
ADELE SHEVEL
THOUGH plastic surgery isstill on the menu of the well-heeled, many continue tosupport non-surgical ways oflooking after themselves.
At good spas, a day packagecosts anything from R900 toR4 500. Top spas, according toSarah McGrath, MD ofconcierge serviceQuintessentially, include:
ý Ellerman Villa in BantryBay, which offers seclusion andprivacy. Guests can hire thewhole floor should they wish;
ý The Island Spa at theOne & Only Hotel in CapeTown is so called becausedifferent sections aresurrounded by water;
ý OneWellness in Sandtonand Cape Town, where you canget spa and gym membership;
ý Equinox Spa at the CapeRoyale Hotel and Residence inGreen Point and
ý Mangwanani Day Spas,with the flagship spa justoutside Pretoria.
McGrath said clients becomeloyal to a particular spa andspas become popular throughword of mouth.
For those who find evengetting to a spa is too much likehard work, there is the optionof calling the masseur ortherapist to your home.
JEREMY THOMAS
IT IS nice to know there is stillsomething not even the wealth-i e st person can be guaranteedbeing able to buy — and that’s theright to play on South Africa’smost exclusive golf course.
Membership of River Club inBryanston is tightly limited andopportunities to play on thecourse are extremely rare — un-less you have a roster of mateswho happen to be members.
If you do crack the nod, thecourse is a revelation. Apart fromone eyesore on the horizon downRandburg way, there is little toremind you that common peoplelurk in the vicinity. River Club istranquil, manicured to perfectionand a devil of a test for anyonewho thinks it too pretty to bemore than a pushover.
There may be tougher courses,like Randpark, or ones with amore openly illustrious list ofmembers — like JohannesburgCountry Club — but River Clubquietly trumps them all.
Forget about pitching up withyour chequebook and hoping tojoin. The only time you need con-cern yourself with annual subs isafter you get the discreet tap onthe shoulder inviting you to be amember. Costs of membershipvary from year to year and itwould be considered vulgar toask what you are in for.
CRAIG JACOBS
IF YOU are turning up at GTFe r r e i r a ’s place and you wouldlike to bring him a tipple thatwould earn you kudos,Vaughan Johnson of theVaughan Johnson Wine andCigar Shop at Cape Town’sWaterfront suggests youconsider a bottle of Columellafrom Malmesbury winemakerEben Sadie, which earned thehighest score in the latest JohnPlatter guide.
There is nothing wrong withbringing along a bottle ofBillecart-Salmon Rosé (whichgoes for just R900 a pop fromVaughan Johnson Wine andCigar Shop), but if you reallywant to impress a trendybillionaire, follow R&Bsuperstar P D i d dy ’s lead andcough up R8 050 for a 750mlbottle of Louis RoedererCristal Rosé, the undisputedking of champagne bling. Youwill find Cristal at NormanGoodfellows in Illovo,Jo h a n n e s b u r g .
Norman Goodfellows alsosells 50-year-old Glenfiddich,which will set you backR150 000 for the 750ml in aselect cask — which is boundto impress Tokyo, thoughpossibly not if you throw in thefact that he could have builtfive RDP houses for that price.
FRESH from its debut atthe 2009 Frankfurt MotorShow, the Ghost is the lat-est member of the exclu-
sive Rolls-Royce clan.Sleeker and more driver-
focused than its bigger Phantombrother, this Roller is endowedwith a 6.6-litre twin-turbo V12engine that is good for 100km/h in4.7 seconds.
Undeniably cool on the outside,the Ghost also has one of theplushest interiors known to man.Handcrafted from the finest
hides and wood veneers, it ishome to a 16-speaker sound sys-tem and lamb’s wool floor mats.
Porsche Panamera Turbo: FromR 1 .1 8 - m i l l i o nForget that ostentatiousCayenne. The Porsche makingthe biggest impression in thebusiness world at the moment isthe new Panamera Turbo, aBahn-busting supercar that cancarry four people in comfort andtop out at a speed of more than300km/h.
Maserati Quattroporte SportGTS: From R2-millionWhile the original MaseratiQuattroporte was a good enoughcar to begin with, this new SportGT S version offers increasedstraight-line performance andcornering prowess. A stiffenedsuspension ensures keener han-dling and that all-new eight-cylin-der engine dishes out more pow-er and torque than ever.
Bentley Continental Flying Spur:P OA
Another rapid four-door luxurysaloon, the Bentley ContinentalFlying Spur combines the best ofBritish styling with bulletproofGerman mechanicals. On theopen road it provides impressiveperformance too, thanks to a 12-cylinder engine. Fitted with twinturbochargers, it whips out anincredible 412kW and is capableof running this 2.4-tonne mono-lith to a top speed of 312km/h.
Mercedes-Benz S 65 AMG: FromR 2 .1 - m i l l i o n
Still the world’s best mainstreamlimo, Mercedes-Benz’s legendaryS-Class delivers uncompromis-ing comfort and power. Th i sclassy executive can dash to100km/h in 4.4-seconds thanks toits V12 bi-turbo engine.
Also renowned for its driversafety, the S 65 AMG is equippedwith Night View Assist Plus, aninnovative optic system that pro-jects a clear, infra-red image ofthe road ahead onto the LCDdisplay for night driving.— Thomas Falkiner
PORSCHE PANAMERA TURBO MASERATI QUATTROPORTE SPORT GT S BENTLEY CONTINENTAL FLYING SPUR MERCEDES-BENZ S 65 AMG
Fine farefor the trulydiscerning
Spas anoption tothe scalpel
Pay up totee up atRiver Club
Can I buyyou adrink?
CRAIG JACOBS
BILLIONAIRES love fine dining,and many breathed a sigh of re-lief in April this year when SunKing Sol Kerzner returned to thelocal hotel industry with the star-studded arrival of the One & O n lyat Cape Town’s Waterfront.
While the hotel boasts its ownprivate villas, it is Nobu restau-rant that has really attracted thepinnacle of the local wealth set.
The restaurant under the helmof famed Japanese chef NobuMatsuhisa is the only Noburestaurant in Africa and featuresdécor touches like an origamilight fixture and a sculpture bySA artist Brett Murray. Who onour Rich List has been known tosavour Nobu’s Japanese fine din-ing experience, which includesblack cod Den Miso for R435 or itsspecially flown-in Wagyu beef (atR385 per 100 grams)?
Johann Rupert and PatriceMotsepe have both been spottedthere. Also in Cape Town, butfurther out, on the Constantia-Uitsig wine estate, billionaireswith a penchant for Asian andFrench fusion food from award-winning chef Luke Dale-Robertsfrequent La Colombe. The restau-rant is a favourite of RaymondAckerman and Tokyo Sexwale. Itoffers a six-course menu for R600without wine, or R800 per headwith the estate’s wines.
Breakingbread withbillionaires