Capitec's remuneration committee (Remco) says excellent performance and strong leadership before and during the ‘Covid-19 year’ informed its decision to reward its three top executives with R177m.

Commenting on the proposed changes to the implementation of the remuneration policy, which investors, holding 47.5% of its shares, shot down at this year's annual general meeting, the Remco said it extensively evaluated how it could sustain the principle of ‘fair and responsible rewards’ to retain key management.

It also said that it proactively engaged with investors on this matter, even though more than 25% of shareholders voted against it, reports Fin24.

Its headline earnings spiked 84% to R8.4bn at the end of the 2022 financial year, surpassing the R6.28bn the company reported before the pandemic in February 2020.

The Remco added that its new calculation methodology also prevents executives from receiving future windfall gains.

‘The committee believes this is a fair approach as executive directors are measured against realistic growth targets and remain open to engaging with all investors on this matter,’ it said.

The Remco emphasised that it consists of a majority of independent non-executive directors who aims to ensure an appropriate reward policy to attract and motivate executives to achieve the long-term interests of shareholders.

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