Former Transaction Capital CEO David Hurwitz was paid an additional R1.8 million for the three months from October to December, on top of his R7.4 million salary for the 2023 financial year. . This was in line with his employment contract, and he officially “resigned” on December 31st.
However, to enforce the trading restrictions, Mr. Hurwitz was paid an additional annual salary in December 2024. In its remuneration report, the organization helpfully notes that he has had “no annual increases” since the end of September. This means he will receive an additional R7.4 million to enable him to remain part of the group “until calendar year 2024 to ensure a smooth CEO transition and handover to Jonathan Jouno.” .
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However, in addition to the trade payment restrictions, he will also receive a “revised” fixed salary along with “existing employee benefits in line with the new employment contract” for the year. Based on other executives and the remuneration of the given executive, this is unlikely to be significantly less than his R4 million.
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The board's compensation committee, under Chairman Quven Pillay, also approved a conditional stock plan (CSP) compensation settlement for Hurwitz in December. It is somewhat unusual for long-term stock awards to be liquidated after a senior executive leaves the company, unless the departure is on agreeable terms.
According to the company's financial report, these CSPs were valued at R15.1 million at the end of September.
However, the company's share price improved from around R4.20 at the time to R7.98 at the time of the settlement in December.
This is an increase of 90% and means that the 540,000 CSPs granted in 2020, 2021 and 2022 were worth approximately R29 million at the time of settlement.
This means he received “payments” of more than R36 million for both the CSP and the enforcement of trade restrictions. This is more than the R4 million he is likely to be paid this year, with his typical remuneration totaling R9.2 million for the 15 months to December 2023.
Other officers
Only one of the group's executive directors (other than the new CFO, who joined the company in June) received an incentive bonus: chief investment officer Mark Herskovitz.
The group said the R2.5-million bonus (“short-term incentive”) was “equal to eight months of Company Charges (CTC) for his role in the ongoing restructuring of SA Taxi’s balance sheet in response to the amended Act.” “It is equivalent.” “Operational and Strategic Direction.”
He was also given a “discretionary CSP award for his role in the ongoing restructuring of SA Taxi’s balance sheet in response to a review of its operational and strategic direction”. These were sold in December and were valued at R9.6 million (as of the end of September).
Sahil Samjowan, who was appointed group CFO in June, was paid a R1.8 million bonus.
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The award is “the equivalent of five months of CTC for his work with Nutun and Transaction Capital Group.” He was also awarded his CSP worth R3.6 million. Mr Samjowan previously served as his CFO for Nutun (the group's debt collection business).
Sean Doherty, the group's former CFO and the new CEO of Mobalyz/SA Taxi, also received a prestigious award. His appointment followed “the backlash from the March 2023 SENS announcement.”
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The group said, “Sean received treatment for a sexually transmitted disease.'' [short-term incentive] He was awarded the equivalent of eight months' CTC for his work leading the operational and strategic reorientation of SA Taxi. ” This bonus was R3.33 million. Mr Doherty was also awarded CSP worth R7.9 million.
At current prices, these CSPs of R29 million (as of September 30) are worth more than R50 million. All three of these executives are directly responsible for the stabilization and repair of SA Taxis (“Mobariz”).
“Due to the collapse in the share prices of Transaction Capital and SA Taxi, short-term incentives were not awarded to David Hurwitz, Jonathan Jouno, Robert Rossi and Michael Mendelowitz,” the group said. Says.
Ex-CEO bonus
Terry Kier, who was ousted as CEO of SA Taxi, was surprisingly paid a R2.5-million discretionary bonus “for his involvement in the conclusion of Gomo's contract with Standard Bank”.
This is embedded in a footnote in the Executive Compensation Summary. Mr Kier was paid a total of R8.7 million, including bonuses, for nine months' service.
The group's share price has slowly recovered from its low of R3.94 in September last year. It closed 88% higher at R7.40 on Tuesday. Even then, he remains 78% below where he was trading this time last year, just a month before “that” Sens announcement.
