If you thought executives were making big bucks in the insurance game, Richard Brasher and his paycheque would like to have a word with you.

The Pick n Pay CEO, who was brought in to take the reins back in 2012, will be receiving an extension on his one million share bonus scheme.

Hmm, that’s a sweet little gesture on Pick n Pay’s part, when Brasher has been at this CEO gig for only six years. We’ll crunch numbers further down the path, but he could net up to R128 million if he meets certain targets.

What gives?

Moneyweb delved deep into their “unusual” decision:

The binary options, comprising 1 million shares, were issued to [Brasher] on his appointment in 2012 and were due to vest in November 2017 …

In its remuneration report for 2018 (part of its integrated report published on Friday), Pick n Pay says the remuneration committee “reviewed the original terms and conditions of these binary options” at a “special meeting” in September 2017 …

Committee chair Hugh Herman writes that “Richard Brasher had, with the support of the Board, successfully implemented the strategic action detailed above in order to reset the long-term earnings trajectory of the Group …

The committee agreed that [Brasher] should not be disadvantaged for strategic action taken for the long-term benefit of the Group …

As such it was agreed to extend the term of his binary scheme by a further 12 months, to November 2018.

In other words, “You done good, Brasher, let’s give you more money.”

Lucky fish.

If the financial jargon’s got you a bit confuzzled, take a look at this table:

According to the original terms of the share option, Brasher is eligible to net as much as R128 million if the stretch target is met.

Think that’s more than enough? Nah, Brasher’s bank account stands to get bigger:

In addition to the above, Brasher could be paid a cash bonus of R10,6 million if the 20-day volume weighted average price (VWAP) up to November 14, 2018 is between R105,11 and R128,90.

Oh, and there’s more:

The group’s executive directors, including Brasher, were paid discretionary bonuses totalling R1,9 million in the 2018 financial year. Brasher received R800 000 as part of his R11,421 million total package.

Must be really nice to be in the upper echelons of a grocery shopping empire.

Now if Pick n Pay could sort out that whole dodgy food storage thing, that would be great.

For more specifics on Brasher’s gracious extension, read the full article here.

[source:moneyweb]