OLD Mutual shareholder Allan Gray said the insurer’s plan to offer CEO Bruce Hemphill a bonus equal to 10 times his base pay to split the group up may be the best way to align his interests with those of investors."You don’t want to the management team to have an incentive to deliberately delay the managed separation process," said Leonard Kruger, a money manager at Cape Town-based Allan Gray, the company’s fifth-biggest investor with a 3% stake. "The executives may not recommend certain outcomes if their incentives aren’t in line with shareholders."Hemphill, who joined the company in November last year, said in March he would separate the London-based company into four separate businesses by 2018 so that it no longer traded at a discount to the combined value of its different divisions, effectively working himself out of a job. With proposed base pay of £900,000 this year, Hemphill’s bonus for breaking the group apart could top £9m, according to data compiled by Bloomberg.‘Push bac...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.