Dis-Chem Pharmacies’ outgoing chief executive Ivan Saltzman’s total remuneration decreased by almost R2.4 million to R20.4m for the year to the end of February from R22.8m last year.
The group said in its integrated report published on Friday that Saltzman’s package consisted of his salary and allowances of R14.3m, which dropped by 4.3% compared with the prior year, R72 000 in retirement and related benefits, as well as R477 000 in other benefits.
The group said the newly appointed CEO, Rui Morais, received just more than R16m in total remuneration for the year to the end of February. His salary and allowances amounted to R11.6m, compared to the prior year which was R10.5m, R72 000 in retirement and related benefits as well as R601 000 as other benefits.
Last month, Dis-Chem Pharmacies announced that Saltzman, who co-founded Dis-Chem with his wife Lynette in 1978, would step down as CEO at the end of last month (June 2023).
Morais was announced as taking the reins. He was the group’s chief financial officer. He assume the role of CEO on Saturday. His appointment was announced in August 2021.
Dis-Chem said Saltzman had also committed to divest 32.25 million Dis-Chem shares owned by the Saltzman family to Morais and a group of key senior executives.
The divestiture of what is an effective 3.75% interest is an incentive to ensure “their ongoing commitment”.
Meanwhile, the group said the average annual performance-linked salary increases for all employees, linked to the consumer price index, was 5.5% and came into effect on March 1 this year.
“The same principle was applied in 2022, and the average annual increase applied was 4.5%. There was no minimum wage adjustment done in the current cycle as this was performed in the prior year in addition to the company increase. This reiterates the company’s philosophy of investing in lower-earning staff,” it said.
The group said the 2023 financial year was challenging for all its stakeholders, with inflation, rising interest rates, global socio-political disruptions, and the local energy crisis being front of mind.
Dis-Chem chair Larry Nestadt said South Africans had been feeling the brunt of adverse global and local economic conditions for some time. Still reeling from the devasting impact of the pandemic, in the past year consumers had had to deal with the consequences of high unemployment, load shedding, rising food and fuel prices and consecutive interest rate hikes.
“Despite these challenges, the group continued to deliver a robust performance and good returns for shareholders. Total revenue grew by 7.4% to R32.7 billion, while headline earnings per share increased by 17.4% to 116.5 cents,” he said.
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