RMH paid CEO Brian Roberts and CFO Ellen Marais R18.7 million and R10.1m, respectively, in total remuneration in 2024, with the company seeking to retain its top executives although there was no adjustment to the executive directors’ fixed pay.
RMH did not pay short-term incentives offered while executive directors did not receive annual long-term incentives.
However, due to the special dividend paid in January 2024, it offered replacement awards in compensation of value lost by participating directors on historically awarded awards.
Roberts’ salary for the half year to September 2023 amounted to about R2m while for the full year to September 2024 he was paid around R4m.
RMH has shifted its financial year-end from 31 March to 30 September.
Roberts’ total compensation for the year to end September 2024, including the salary, awards and escrow dividends, amounted to R18.7m compared to R13.8m for the half year to September 2023.
The total compensation for 2024 for CFO Ellen Marais amounted to R10.1m compared to R6.9m, including around R2m in salary, in half year to September 2023. Marais’ compensation for the full year consisted of a R4.1m salary as well as awards and escrow dividends totaling R7.8m.
Roberts joined RMH Property in 2017 and was appointed CEO of RMH in 2022.
“Upon joining, Roberts exchanged his existing Integer exposure for carry participation in RMH Property. Combined with a sign-on award, the value represented a 4% carry exposure to RMH Property’s net asset value growth with a hurdle rate of 1%,” said the company in its annual report for 2024.
RMH had also offered Roberts the opportunity to receive financial assistance amounting to R50m in loans to maintain his 4% exposure to RMH Property. His shares in RMH Property served as collateral for the loan.
Due to the Atterbury loan conversion in November 2023 and the increase in RMH’s investment in RMH Property, Roberts’ participation had diluted to 2.87% although his participations via the loan and the carry are currently valued at R nil per share.
RMH remuneration committee chairman, Murphy Morobe, said the company’s remuneration practices “seek not only to incentivise and retain top talent but to do so in partnership with shareholders, while upholding the company’s values, ethics and business” strategy.
“The strategic drive to orderly monetise the underlying portfolio assets remains top of mind and informs the committee’s approach to ensuring the effective management of RMH’s long-term incentive strategy,” said Morobe.
RMH, at the inception of RMH Property, had also agreed that its investment executives would participate up to a maximum of 10% of the portfolio, based on a portfolio value of R2 billion.
Herman Bosman, RMH non-executive chairman, had his participation capped at 2.5% of the 10% although his participation is currently valued at zero rands per share.
* Business Report regrets inaccuracies in the RMH Holdings on Monday, titled RMH Holdings doubles executive pay amid strategic retention drive. The reference to a doubling in executive pay is incorrect, among other inaccuracies, as the comparative figures presented for 2023 were for six months rather than 12 months resulting in the disparate figures and seeming “doubling” in pay.
BUSINESS REPORT