Sanlam CEO Ian Kirk is taking a 20% cut on his 2017 bonus, a reduction of R2.5m, as part of a company-wide trim to incentives relating to Steinhoff exposure contained in client funds. "It was the right thing to do. Sanlam clients who suffered losses on Steinhoff would be asking, ‘How are Sanlam executives suffering?’," Kirk, who would not have been directly involved in decisions to buy Steinhoff shares, said on Thursday, following the group’s annual results. The move is highly unusual in an industry that is frequently criticised for accepting handsome performance fees when funds do well, but seldom participating in the downside to the same degree. "Asset managers derive a fee irrespective of whether a fund has performed or not," said shareholder activist Theo Botha, an open critic of Coronation’s opaque bonus structures. "It will be interesting to see what other asset managers do" in the light of Sanlam’s move. About 100 employees across Sanlam, including in its investments business...
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.