November 1 2009

HOW THEY MAKE IT... HOW THEY SPEND IT

MEET THE REAL TYCOONS OF SOUTH AFRICA

Worth: R16.95bn

Worth: R14.25bn

Worth: R5.36bn

Paid: R411.60m

Paid: R50.38m

Paid: R49.52m

LAKSHMI MITTAL The steel baron’s wealth has dropped more than half

PATRICE MOTSEPE Lost some value but still the richest South African

NICKY OPPENHEIMER Only his shares in Anglo are counted

CHIP GOODYEAR Share gains boost an already huge salary

BRETT LEVY Huge benefits for a small player

STEPHEN KOSEFF Basic salary less but performance bonus huge

In a year the top 10 richest in SA lost ...

R56.1-BILLION
FULL RICH LIST P2, FULL EARNINGS LIST P4

HOW THEY MAKE IT... HOW THEY SPEND IT

2 RICH LIST
THE RICHEST
Director & company 1 2 Lakshmi Mittal ArcelorMittal SA Patrice Motsepe Sanlam African Rainbow Minerals Nicky Oppenheimer Anglo American plc Christo Wiese Shoprite Holdings PSG Group Invicta Holdings Tradehold Ackerman Family Pick n Pay Holdings Elephant Consortium Telkom Rembrandt Trust Remgro (holding in B shares) Desmond Sacco Assore Stephen Saad Aspen Pharmacare Laurie Dippenaar FirstRand RMB Holdings GT Ferreira RMB Holdings Bruno Steinhoff Steinhoff International Bill Venter Altech Altron Adrian Gore Discovery Holdings Giovanni Ravazzotti Italtile Ceramic Industries Tokyo Sexwale Mvelaphanda Resources Mvelaphanda Group Cyril Ramaphosa SABMiller plc Standard Bank Group Bidvest Group Assore Giuseppe Zannoni Italtile Ceramic Industries Gus Attridge Aspen Pharmacare Koos Bekker Naspers -N Barry Swartzberg Discovery Holdings Royal Bafokeng Consortium Merafe Resources Metair Investments Jannie Mouton Steinhoff International PSG Group Paul Harris FirstRand Remgro RMB Holdings Michael Lewis Foschini Maxim Krok Aspen Pharmacare Gold Reef Resorts Phuthuma Nhleko MTN Group Markus Jooste Steinhoff International PSG Group Phumelela Sipho Nkosi Sanlam Exxaro Resources Lazarus Zim Sanlam Northam Platinum Mvelaphanda Resources Johnny Copelyn HCI Mark Willcox Mvelaphanda Resources Mvelaphanda Group Koos Raubenheimer Raubex Group Michiel le Roux Capitec Bank Holdings Zeder Investments Phoevos Pououlis Keaton Energy Holdings Brett Levy Blue Label Telecoms Leon Kirkinis African Bank Investments Saki Macozoma Standard Bank Group Zweli Mntambo Exxaro Resources Mark Levy Blue Label Telecoms Freddie Kenney Raubex Group Marcel Golding HCI Peter Malungani Investec Ltd Phumelela Gaming & Leisure Super Group Des de Beer Pangbourne Properties Resilient Property Income Fund Capital Property Fund Gino Stefanutti Stefanutti & Bressan Steven Gottschalk Value Group Brian Joffe Bidvest Group Afrocentric % holding 52.02% 5.75% 41.46% 2.50% 15.15% 8.05% 33.15% 61.19% 49.33% 5.85% 0.00% 23.79% 14.71% 0.06% 7.49% 7.21% 11.79% 0.02% 56.14% 9.47% 32.13% 33.03% 13.24% 16.90% 0.00% 0.29% 0.46% 4.01% 22.69% 23.17% 4.99% 1.16% 4.92% 29.28% 24.85% 0.26% 23.66% 0.05% 0.04% 2.49% 6.30% 2.34% 5.45% 0.32% 2.28% 10.39% 1.28% 0.01% 2.26% 0.01% 1.25% 6.74% 10.33% 6.62% 4.04% 13.69% 15.78% 0.04% 28.68% 11.73% 2.02% 0.31% 1.56% 10.76% 11.29% 7.08% 2.88% 4.54% 7.39% 0.06% 5.64% 0.65% 25.72% 55.60% 1.02% 1.51% Investment total (R-m) R16 950 R16 950 R14 246 R2 093 R12 153 R5 359 R5 359 R5 053 R4 166 R217 R502 R168 R3 267 R3 267 R3 214 R3 214 R3 116 R3 116 R2 886 R2 886 R2 422 R2 422 R1 956 R90 R1 866 R1 796 R1 796 R1 629 R1 629 R1 518 R1 R1 516 R1 405 R1 405 R1 346 R877 R469 R1 162 R825 R337 R988 R1 R366 R135 R487 R949 R619 R329 R821 R821 R750 R750 R730 R730 R674 R504 R170 R673 R35 R638 R666 R35 R11 R620 R666 R666 R655 R385 R270 R637 R637 R605 R315 R280 R10 R558 R3 R555 R538 R3 R116 R420 R529 R529 R493 R412 R81 R450 R450 R424 R424 R0 R421 R421 R413 R413 R410 R410 R392 R392 R383 R383 R379 R379 R371 R371 R363 R363 R360 R300 R34 R25 R351 R4 R325 R23 R326 R326 R324 R324 R312 R302 R10 Director & company 48 49 % holding Willie Marais Omnia Holdings 13.22% Alec Wapnick Premium Properties 10.53% Octodec Investments 12.50% Gordon Schachat African Bank Investments 1.49% Hans Enderle City Lodge Hotels 10.61% Roland Sassoon Sasfin Holdings 44.14% Robert Nisbet MTN Group 0.14% Stephen Koseff Investec plc 1.15% Investec 0.71% Michael (Motty) Sacks Netcare 2.09% Advtech 0.10% Afrocentric 2.10% Meyer Kahn SABMiller plc 0.11% Afrocentric 2.10% Whitey Basson Shoprite Holdings 0.91% Pat Goss FirstRand 0.00% RMB Holdings 0.96% AVI 0.07% Bernard Kantor Investec plc 0.01% Investec Ltd 1.98% Phumelela Gaming & Leisure 4.52% Claas Daun Steinhoff International 0.03% Kap International 39.98% Ragi Moonsamy Growthpoint Properties 0.43% Mvelaphanda Resources 2.46% William Battershill BSI Steel 44.66% Riaan Swart Blue Financial Services 16.62% Dave Van Niekerk Blue Financial Services 16.62% Nkululeko Sowazi Exxaro Resources 0.61% Emira Property Fund 1.59% Alwyn Martin Petmin 28.92% Gary Morolo Datacentrix Holdings 39.54% Mikki Xayiya Mvelaphanda Resources 2.21% Mvelaphanda Group 4.04% Kevin James Country Bird Holdings 57.98% Herschel Mayers Discovery Holdings 1.43% Edwin de la Harpe Hertzog Remgro 0.46% Medi-Clinic Corporation 0.57% Distell Group 0.02% Msolisi Diliza Growthpoint Properties 1.09% Herbert Theledi Blue Label Telecoms 5.87% Alan Burke ARB Holdings 51.39% Jeffery Wapnick Premium Properties 6.46% 9.18% Octodec Investments Maldwyn Zimmerman 40.43% Combined Motor Holdings Reginald Sherrell 13.49% Invicta Holdings Sifiso Dabengwa 0.10% MTN Group Sharon Wapnick 6.19% Premium Properties 8.71% Octodec Investments Dalikhaya Zihlangu 0.79% Exxaro Resources Michael Wylie 3.46% Wilson Bayly Holmes - Ovcon Sean Melnick 14.69% Peregrine Holdings Jens Montanana 7.04% Datatec Robert Gumede 34.07% Gijima AST Group Michael Mark 1.22% Truworths International Brian Holmes 3.10% Wilson Bayly Holmes - Ovcon Ivan Clark 2.58% Grindrod Panagiotis Halamandaris 12.22% Famous Brands Pat Goldrick 9.42% Cashbuild Wolf Cesman 0.03% Redefine Income Fund 0.02% Apexhi Properties 12.04% Madison Prop. Fund Managers Lionel Jacobs 0.54% Bidvest Group Marc Wainer 0.02% Redefine Income Fund 11.81% Madison Prop. Fund Managers Terry Moolman 2.64% Caxton & CTP Pub. & Printers Neil Jowell 0.03% Trencor 12.64% Mobile Industries Jeff Zidel 2.68% Resilient Property Income Fund Cecil Jowell 0.03% Trencor 12.41% Mobile Industries Theofanis Halamandaris 10.59% Famous Brands Figures in this table have been rounded off Investment total (R-m) R311 R311 R304 R151 R154 R302 R302 R292 R292 R285 R285 R273 R273 R272 R198 R74 R254 R238 R1 R14 R250 R236 R14 R249 R249 R247 R4 R239 R4 R242 R2 R206 R34 R241 R4 R238 R236 R82 R154 R234 R234 R233 R233 R233 R233 R229 R151 R78 R224 R224 R222 R222 R218 R137 R81 R217 R217 R212 R212 R212 R137 R73 R2 R209 R209 R207 R207 R205 R205 R205 R92 R113 R204 R204 R204 R204 R204 R204 R195 R89 R107 R195 R195 R195 R195 R193 R193 R182 R182 R181 R181 R178 R178 R174 R174 R168 R168 R167 R167 R165 R165 R163 R2 R2 R159 R159 R159 R157 R1 R156 R157 R157 R156 R1 R155 R154 R154 R153 R1 R152 R145 R145 Director & company 98 99 Simon Susman Woolworths Holdings Hymie Levin Netcare Advtech Famous Brands Ian Kantor Investec plc Investec Ltd Shaun Rai Ambit Properties Thys Visser British American Tobacco plc Perikles Halamandaris (jnr) Famous Brands Glynn Burger Investec plc Investec Ltd John Robertson Discovery Holdings Jebb McIntosh Combined Motor Holdings Herman Mashaba Growthpoint Properties Adam Fleming Witwatersrand Cons Gold Christopher Seabrooke Massmart Holdings Datatec Metrofile Holdings Set Point Technology Chris Kruger Africa Cellular Towers Arnold Goldstone Invicta Holdings Thami Sokutu African Bank Investments Gregory Lotis Metmar Piet Boshoff Metmar Glen Forsdyke Metmar David Ellwood Metmar Dennis Polak Foschini Nick Vlok Digicore Holdings Steve Pacak Naspers -N John Halamandres Famous Brands Nigel Townshend TWP Holdings Steven Joffe Gold Reef Resorts Brian Buckham Advtech Antoinette Sedibe Keaton Energy Holdings Gavan Ryan Coronation Fund Managers Metair Investments Moss Ngoasheng Kelly Group Graham Mackay SABMiller plc Leslie Maasdorp Pangbourne Properties Tony Scharrighuisen Argent Industrial Elliot Salkow Ellies Holdings David Samuels Invicta Holdings Paul Theodosiou Acucap Properties Sycom Property Fund Ronald Price Eureka Industiral Mamphela Ramphele Medi-Clinic Corporation Grant Pattison Massmart Holdings Horst Sass Bowler Metcalf Martin Moritz Comair Fred Robertson Remgro Brimstone Barry Stuhler Pangbourne Properties Capital Property Fund Hugh Herman Growthpoint Properties Investec plc Investec Ltd Pick n Pay Holdings Louis Stassen Coronation Fund Managers Yolanda Cuba Steinhoff International Holdings Mvelaphanda Group Akhter Deshmukh Sea Kay Holdings Graeme Gordon Liberty International plc Mustaq Brey Nedbank Group Brimstone Investment Corp. Riaan Stassen Capitec Bank Holdings Yogesh Narsing Pangbourne Properties Jonathan Hlongwane Vukile Property Fund Esor David Lewis Resilient Property Income Fund Brian Bruce Murray & Roberts % holding 1.58% 0.77% 2.50% 1.06% 0.35% 0.75% 6.60% 0.03% 9.48% 0.49% 0.39% 0.81% 23.73% 0.62% 9.50% 0.30% 0.40% 5.43% 19.65% 34.23% 7.50% 0.56% 15.30% 15.30% 15.30% 15.30% 1.03% 15.73% 0.16% 7.51% 24.46% 2.07% 6.95% 6.89% 3.68% 6.47% 30.77% 0.04% 1.59% 11.41% 37.18% 6.34% 2.29% 0.06% 41.10% 0.73% 0.66% 21.49% 10.37% 0.00% 11.62% 0.60% 1.42% 0.00% 0.31% 0.28% 0.02% 5.52% 0.59% 0.16% 24.42% 0.42% 0.00% 11.25% 2.94% 1.32% 1.84% 4.32% 1.35% 0.57% Investment total (R-m) R144 R144 R138 R87 R37 R15 R137 R59 R78 R132 R132 R131 R131 R130 R130 R124 R83 R40 R120 R120 R120 R120 R119 R119 R119 R119 R115 R42 R10 R17 R46 R114 R114 R114 R114 R113 R113 R111 R111 R111 R111 R111 R111 R111 R111 R109 R109 R107 R107 R106 R106 R103 R103 R103 R103 R103 R103 R102 R102 R101 R101 R101 R57 R44 R100 R100 R100 R100 R97 R97 R97 R97 R96 R96 R96 R96 R95 R93 R2 R2 R94 R94 R93 R93 R93 R93 R90 R90 R90 R90 R87 R0 R87 R86 R36 R50 R85 R1 R53 R30 R2 R85 R85 R85 R82 R3 R85 R85 R82 R82 R82 R0 R81 R81 R81 R80 R80 R79 R50 R29 R78 R78 R77 R77 3 4 50 51 52 53 54 100

November 1 2009

METHODOLOGY

101 102 103 104

5 6 7 8 9 10

55

Counting the many pennies
Data is checked, and checked again
HOW IT WAS ALL FIGURED OUT Directors’ holdings for the Rich List reflect wealth at March 31 2009. The earnings table reflects what was earned in 2008. THE RESEARCH WAS DONE AS FOLLOWS: An initial extraction of the remuneration and options, headline earnings and director and family holdings was made by Who Owns Whom research staff. The information was reviewed from the published documents by Who Owns Whom management and compared with the extraction. The information was again researched from the published documents and compared with the management result by the Who Owns Whom executive directors. Each director’s holding was sent to the relevant company secretary for corroboration. PLEASE NOTE: ý The calendar years 2007 and 2008 were researched from hard copy and Internet documents published in terms of the Companies Act and JSE listing requirements; ý Shareholdings were extracted as published in public documents and public share registers; ý Shareholdings included those held via trusts, where this was deemed appropriate; ý The market price as at March 31 2009 was used for the valuation of holdings; ý It was assumed that the conditions of conditional options would be met; ý Options issued under more than one scheme or over a period were added where this was deemed appropriate; ý Gains on options exercised in the year under review were included in remuneration; ý Earnings and directors’ fees paid to other companies were excluded; ý Severance packages and retention bonuses were included in remuneration; ý Conversion rates to the rand were as follows: British pound 14.3, US dollar 7.5, euro 11.3. NOTES REGARDING THE RESEARCH: ý MTN Directors The Alpine Trust and Newshelf 664 were unwound in December 2008 as per their six-year mandate and the shares distributed to directors and staff in accordance with the mandate after settlement of debt, primarily to the PIC. In terms of previous valuations of director entitlements we were not privy to the funding arrangements and qualified those holdings as follows: “It should be noted that the funding arrangements for these holdings have not been disclosed, which could offset against the value of the holdings.” The valuation of directors’ holdings in the current study have not been confirmed by the company and were calculated based on SENS announcements on the transaction issued by the company. ý Patrice Motsepe Motsepe’s holding in African Rainbow Minerals is via African Rainbow Minerals Exploration Investments (Pty) Ltd, but the shareholding of this private company is not disclosed.

105 106 107 108 109

56

57 58

11 12 13

59

110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125

14 15

60

61

16

62 63 64 65

17

18

19 20 21 22

66 67 68

69 70 71

23

24

72 73 74 75

25 26

126 127 128 129 130 131 132

27 28

76 77 78 79

29

30

133 134 135 136 137 138

80 81 82 83 84 85 86 87 88 89 90

31 32

33 34

35 36 37 38 39 40 41 42 43

139

140

141 142

91 92

143 144 145

93 94

44

146 147 148

95 96

45 46 47

149 150

97

HOW THEY MAKE IT... HOW THEY SPEND IT
November 1 2009

RICH LIST 3

BOSSES RAKE IN MILLIONS IN BONUSES REGARDLESS OF HOW WELL THEY DO

Tricks of the trade
CEOs look after No 1
MARCIA KLEIN

M

EMBERS of remuneration committees have a lot to answer for. This year’s Rich List, which tracks not only SA’s richest people, but also the country’s biggest earners, shows that executives are pocketing all sorts of additional bonuses and making mega-profits on unacceptably generous share options. This is in addition to huge basic salaries and performance bonuses, with bonuses still being earned by many despite the nonperformance of their companies. The innovative ways and means to add to executives’ pots increases with every year. The list also shows executives get special payments when companies dispose of assets or list. In 2008 Chip Goodyear, the former boss of BHP Billiton, earned a staggering R411.6-million, with R380-million pocketed from gains on shares. The top of the topearners list is dominated by executives of offshore-listed companies, including Richemont’s Norbert Platt, and British American Tobacco’s Paul Adams. Investec’s Stephen Koseff is ranked fifth in the earnings table with R49.5-million pay in 2008, and MD Bernard Kantor, who ranked sixth, earned similarly. But alongside the top international earners are a few glaring anomalies. Brett Levy, the joint CEO of pre-paid telecoms company Blue Label Telecoms, was the fourthhighest earner on the list, pocketing over R50-million in 2008. This includes R40-million paid in lieu of a pre-listing contractual bonus entitlement, which was then used to buy shares. This is over and above an exceptionally generous R5.9-million salary for a company of that size, and a performance bonus of R3.4-million. Having got the shares from the pre-listing payment, and the many more he owns, Levy is now SA’s 36th richest person, with R413-million of Blue Label stock. Blue Label’s other joint CEO, Brett’s brother Mark Levy, was ranked seventh in the earnings table, raking in R49.5-million, the bulk of it coming from the same scheme. His wealth is R379-million, ranking him 40th. Prakash Desai, the CEO of Avusa, the owner of this publication, earned a massive R29.3million in 2008, including a R10.7million top-up payment on the sale of M-Net SuperSport and unbundling of Naspers and other assets, and over R13-million gain on the sale of shares. The Levys, Grindrod’s Tim McClure (earnings: R39.8-million), Rainbow Chicken’s Miles Dally (R39.7-million) and Desai, all of whom received special payments

of some kind, all earned more than executives of major companies like FirstRand’s outgoing CEO Paul Harris, Bidvest CEO Brian Joffe and Anglo American CEO Cynthia Carroll. Retention bonuses and restraints of trade also featured on this year’s earnings list. Telkom CEO Reuben September earned R19-million, including a R13-million restraint-of-trade payment. Kgomotso Mosehla, a former executive of Mvelaphanda Resources, earned R15.8-million during the year, which included a R12-million long-term retention bonus and a R2.5-million termination benefit — meaning he was paid both to stay and to go away in the same year. Termination benefits significantly boosted a number of salaries. Mondi paid Paul Hollingworth almost R19.5-million to go, while Sasol paid Trevor Munday R16-million. In fact, of SA’s 100 biggest earners of 2008, close to 20 are no longer working at the companies who felt the need to pay them so handsomely to retain their services. Executives earn performance bonuses in good and bad times. The best example is Larry Lipschitz, the former CEO of Super Group, who earned R10.9-million including a R5-million performance bonus in what was one of the company’s worst years ever. He finally left it struggling for survival. While he was still being paid performance bonuses, investors lost most of their money. The earnings list, (available in detail on Page 4), reflects research into the top executives and directors of all of SA’s listed companies. The Rich List, (on Page 2), is a comprehensive report on SA’s richest people whose wealth is a matter of public information. The economic crisis has been a blow to the fortunes of SA’s wealthiest, almost without exception. Lakshmi Mittal, although not a South African, remains at the top through his holding in ArcelorMittal SA. At this time last year, this holding was worth R45.7-billion. This year it is worth R16.95-billion, but he retains his position. This is just a fraction of what he is worth through his other international holdings. Patrice Motsepe, the richest South African and the secondranked person in the SA Rich List, was worth R22-billion last year, and is now worth R14.25-billion. He has, however, made some recovery as his wealth was R9.7billion in mid-November, at the peak of the economic crisis. Between March and November last year, SA’s 10 richest people lost a total of R61.5-billion. Their wealth was R114.6-billion last March. By mid-November their wealth plunged to R54.1-billion. The Rich List published today

LAKSHMI MITTAL
shows that there has been only a slight recovery between then and March this year, the cut-off date for the research, as their collective wealth inched up to R58.5-billion. Among the wealthiest, Nicky Oppenheimer follows Motsepe at number three, with wealth of R5.4-billion, down from R16-billion last year. This only includes his holding in Anglo American;

PATRICE MOTSEPE
the family’s wealth is largely held in De Beers. Christo Wiese, ranked fourth, is one of the few in the top ranks whose wealth increased, from R4.3-billion to just over R5-billion, largely due to strong performers Shoprite and PSG Group. The Ackerman family’s Pick n Pay interest was static at R3.3billion. The Elephant Consortium, ranked sixth, whose invest-

CHIP GOODYEAR
ment in Telkom is valued at R3.2-billion, and Royal Bafokeng Holdings, ranked 22nd, are not individuals but are still included on the list. Rembrandt Trust, essentially the Rupert family, slips from fourth to seventh, although the value, at R3.1-billion, is unchanged. The Ruperts and Oppenheimers were once the richest in the country by far.

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THE BIG EARNERS
Name & company HEPS increase Designation /decrease 2007/2008 TerminTotal Other ation Salary benefits benefits benefit (R'000) (R'000) (R'000) (R'000) Performance bonus (R'000) Gains Fees/ on levy shares pay (R'000) (R'000) Total 2007 (R'000) Total % salary 2008 increase (R'000) from 2007 Name & company HEPS increase Designation /decrease 2007/2008 TerminTotal Other ation Salary benefits benefits benefit (R'000) (R'000) (R'000) (R'000) Performance bonus (R'000) Gains Fees/ on levy shares pay (R'000) (R'000) Total 2007 (R'000) Total % salary 2008 increase (R'000) from 2007

1 Chip Goodyear BHP Billiton plc 2 Norbert Platt Compagnie Financière Richemont 3 Paul Adams British American Tobacco plc 4 Brett Levy Blue Label Telecoms 5 Stephen Koseff Bidvest Group Investec Ltd Investec plc JSE 6 Bernard Kantor Investec plc Phumelela Gaming & Leisure 7 Mark Levy Blue Label Telecoms 8 Brian Bruce Murray and Roberts Holdings 9 Graham Mackay SABMiller plc 10 Glynn Burger Investec Ltd Investec plc 11 Tim McClure Grindrod 12 Miles Dally Rainbow Chicken 13 Johann Rupert Compagnie Financière Richemont 14 Marius Kloppers BHP Billiton plc 15 Carl Grim Aveng 16 Richard Lepeu Compagnie Financière Richemont 17 Prakash Desai ElementOne (prev. Johnnic Communications) 18 Diane Radley Allied Electronics Corp. 19 Paul Harris Discovery Holdings FirstRand Remgro 20 Brian Joffe Bidvest Group 21 Brad Mills Lonmin plc 22 Paul Hollingworth Mondi plc 23 Jim Sutcliffe Nedbank Group Old Mutual plc 24 Nicandro Durante British American Tobacco plc 25 Pieter Cox Sasol 26 Julian Roberts Old Mutual plc 27 Sifiso Dabengwa MTN Group 28 Cynthia Carroll Anglo American plc Anglogold Ashanti 29 Malcolm Wyman SABMiller plc 30 Paul Rayner British American Tobacco plc 31 Jabu Mabuza Hosken Consolidated Investments 32 Jannie Mouton Capitec Bank Holdings PSG Group Remgro Steinhoff International 33 Ian Farmer Lonmin plc 34 Trevor Munday Absa Group Barloworld Reunert Sasol 35 Robert Venter Allied Electronics Corp. 36 Jeff Wright Afgri 37 Phuthuma Nhleko MTN Group 38 Alan Tapnack Investec Ltd Investec plc 39 Ben Stevens British American Tobacco plc 40 Reuben September Telkom Group 41 Peter Cooper Discovery Holdings RMB Holdings 42 David Brown Impala Platinum Holdings Simmer and Jack Mines 43 Pat Davies Sasol 44 Gavin Soll Clientele 45 Steve Booysen Absa Group 46 Walter Ballandino Highveld Steel & Vanadium Corp. 47 Steve Phiri Impala Platinum Holdings Merafe Resources Zurich Insurance Co. SA

6 666 20.0% Former CEO 18.4% CEO 11.0% CEO 97.9% Joint CEO 10.1% Non-exec -3.3% CEO -3.3% CEO 56.4% Former Non-exec -3.3% Exec MD -22.0% Non-exec 97.9% Joint CEO 69.2% CEO 19.5% CEO -3.3% Exec -3.3% Exec 94.5% Exec 7.8% CEO 18.4% Exec Chairman 20.0% CEO 72.2% Former CEO 18.4% Execl 130.8% Former exec 32.5% Former Exec 4.1% Former Non-exec -8.9% CEO 16.5% Non-exec 10.1% CEO 100.5% Former CEO -48.6% Former Exec -4.2% Former Non-exec -55.2% Former CEO 11.0% Exec 50.1% Non-exec Chairman -55.2% CEO 43.0% Exec 4.3% CEO 96.1% Former Non-exec 19.5% Exec Financial 11.0% Former Director 34.7% Exec 16.5% Former Non-exec Chairman -43.2% Exec Chairman 16.5% Former Non-exec 31.7% Non-exec 100.5% CEO 4.6% Non-exec -48.0% Former Non-exec 139.3% Non-exec 50.1% Former Exec 32.5% CEO 18.7% Former MD 43.0% CEO -3.3% Exec -3.3% Exec 11.0% Exec -4.4% CEO 4.1% Non-exec -6.1% Exec 57.4% CEO -29.4% Former Non-exec 50.1% Exec 27.8% Exec 4.6% Former CEO 81.9% CEO 57.4% Non-exec 320.0% CEO -30.5% Non-exec 6 666 51 966 51 966 20 273 20 273 6 764 6 764 4 629 – – 4 629 – 5 294 5 294 – 5 861 5 861 3 119 3 119 14 586 14 586 3 142 – 3 142 2 001 2 001 3 418 3 418

3 200 3 200 739 739 1 503 1 503 260 260 1 055 – – 1 055 – 539 539 – 263 263 932 932 5 377 5 377 612 – 612 619 619 413 413

– 14 095 – 14 095 – – – – – –

6 999 380 639 6 999 380 639 – – – – – – – – 2 264 – 787 1 477 – 2 140 2 140 – – – 37 430 37 430 – – 7 211 2 614 4 597 2 352 2 352 33 208 33 208 – – – – 25 410 25 410 – – 13 378 13 378 25 294 25 294 12 353 – 12 353 – 11 503 11 503 – – – – 9 929 – 9 929 – –

– 29 746 411 598 – 29 746 411 598 1283.7% – – – – 52 705 52 705 51 174 51 174 50 384 50 384 49 524 70 787 48 631 36 49 522 49 444 78 49 484 49 484 47 780 47 780 47 362 47 362 45 941 2 614 43 327 39 857 39 857 39 666 39 666 34 161 34 161 31 713 31 713 31 379 31 379 29 469 29 469 29 337 29 337 28 538 28 538 28 021 93 27 753 175 27 786 27 786 27 194 27 194 27 158 27 158 26 009 235 25 774 24 715 24 715 24 047 24 047 23 784 23 784 23 642 23 642 22 408 22 408 – 22 115 22 115 21 933 21 933 21 926 21 926 21 660 1 341 19 939 – 380 21 592 21 592 21 433 720 152 36 20 525 20 707 20 707 20 537 20 537 19 958 19 958 19 917 1 370 18 547 19 373 19 373 19 109 19 109 19 093 170 18 923 19 043 16 696 19 024 19 024 18 970 18 970 18 153 18 153 17 912 17 912 152.1% 56.9% -37.2% 183.2% 70.4% 22.8% 19.3% -26.0% 189.8% 9.7% -25.0% -40.0% -100.0% 7.8% 8.5% 166.4% 168.2% -9.9% -100.0% 2.7% 173.3% 101.4% -28.0% 555.7% 535.6% -32.6% 8.5% 19.0% 3.3% 41.9% 40.5% -13.0% -12.1% 82.4% -9.7% 64.0% 216.7% 29.6% -43.5% -4.4% -72.9% -4.6% 8.3% 273.6% -51.8% 20.8% -11.6% 5.7% 67.7% 284.5%

48 David Hathorn Mondi plc 49 Sean Flanagan Murray and Roberts Holdings 50 Mark Cutifani Anglogold Ashanti 51 Michael Mark Truworths International 52 Whitey Basson Shoprite Holdings 53 Dennis Gammie Aveng 54 Peter Surgey Barloworld 55 Alain Perrin Compagnie Financière Richemont 56 Tom Boardman Nedbank Group 57 Jens Montanana Datatec 58 Bob Carpenter Assore 59 Kgomotso Brian Mosehla Mvelaphanda Resources 60 Chris Cory Assore 61 Bruce Campbell Alexander Forbes Mutual & Federal 62 Anthony Stewart Grindrod 63 Phil Crous Assore 64 Chris Otto Capitec Bank Holdings PSG Group 65 Dirk Van Staden Exxaro Resources 66 Brett Dawson Dimension Data Holdings plc 67 Duncan Wanblad Anglo Platinum 68 Abdul Mahomed Imperial Holdings 69 Jacko Maree Standard Bank Group 70 Peter Oswald Mondi plc 71 Alan Ferguson Lonmin plc 72 René Médori Anglo American plc 73 Jonathan Nicholls Old Mutual plc 74 Grant Pattison Massmart Holdings 75 David Redshaw Allied Electronics Corp. 76 Sizwe Nxasana FirstRand 77 Johan Van Zyl Sanlam Santam 78 Nolitha Fakude Sasol 79 Stuart Murray Aquarius Platinum 80 Izak De Wet Goosen Afgri 81 Papi Molotsane Telkom Group 82 Frank Thompson Advtech 83 Venkat Venkatakrishnan Anglogold Ashanti 84 Markus Jooste PSG Group Steinhoff International 85 Louis Von Zeuner Absa Group 86 Michael Kilbride Exxaro Resources 87 John Bortolan Nampak 88 Richard Inskip Woolworths Holdings 89 Jan Rupert Compagnie Financière Richemont 90 Craig Venter Allied Electronics Corp. Allied Technologies 91 Gerald Riemann Imperial Holdings 92 Marius Heyns Basil Read 93 Clive Thomson Barloworld Pretoria Portland Cement 94 David Rennie Grindrod 95 Larry Lipschitz Super Group 96 Hubert Brody Imperial Holdings 97 Aubrey Karp Shoprite Holdings 98 David Robinson Aveng 99 David Kneale New Clicks Holdings

13 854 -48.6% CEO 69.2% Exec 96.1% CEO 18.9% CEO 53.7% CEO & MD 72.2% Exec Financial -48.0% Exec 18.4% Exec -4.2% CEO 11.8% CEO 317.7% Exec Deputy Chair 107.7% Former Exec 317.7% CEO CEO -113.4% Former MD 94.5% Exec 317.7% Exec 16.5% Non-exec -43.2% Exec -100.0% Exec 65.1% CEO 7.1% Former Exec -49.4% Exec -1.9% CEO -48.6% Exec 100.5% Exec 4.3% Exec -55.2% Former Exec 17.3% CEO 32.5% Exec -8.9% Exec -58.9% CEO -35.3% Non-exec 50.1% Exec 26.3% CEO 18.7% Former Exec -4.4% Former CEO 25.6% CEO 96.1% Exec -43.2% Non-exec 31.7% CEO 4.6% Exec -100.0% Former Exec -4.0% CEO -9.5% Former Exec 18.4% Exec 32.5% Exec 22.2% CEO -49.4% Exec 68.4% CEO -48.0% CEO 7.6% Former Non-exec 94.5% Exec -89.3% CEO -49.4% CEO 53.7% Exec 72.2% Exec 26.7% CEO -4.0% Former Exec 13 854 2 259 2 259 9 513 9 513 3 712 3 712 13 158 13 158 1 845 1 845 2 280 2 280 16 350 16 350 4 104 4 104 7 890 7 890 3 232 3 232 1 193 1 193 2 950 2 950 2 069 2 069 – 1 805 1 805 2 592 2 592 2 172 – 2 172 2 986 2 986 5 063 5 063 1 966 1 966 3 423 3 423 4 547 4 547 11 440 11 440 6 042 6 042 9 438 9 438 7 508 7 508 2 550 2 550 2 930 2 930 4 065 4 065 4 492 4 492 – 2 925 2 925 5 842 5 842 2 125 2 125 12 036 12 036 1 639 1 639 5 585 5 585 10 690 – 10 690 3 386 3 386 1 921 1 921 4 205 4 205 2 104 2 104 11 038 11 038 3 407 3 407 – 4 208 4 208 2 686 2 686 3 873 3 873 – 1 902 1 902 4 871 4 871 3 787 3 787 2 053 2 053 4 561 4 561 4 054 4 054 1 734 1 734

431 431 525 525 1 501 1 501 1 007 1 007 3 482 3 482 405 405 9 390 9 390 – – 309 309 1 597 1 597 977 977 – – 920 920

– – – – – – – – – – – – – – – – – – – – –

– – – – – –

3 321 3 321 3 000 3 000 5 877 5 877

– – 11 343 11 343 – – – – – – 11 943 11 943 2 805 2 805 – – 5 783 5 783 – – – – – – – – – – – 10 575 10 575 – – 10 306 – 10 306 2 230 2 230 – – 9 565 9 565 7 553 7 553 – – – – – – – – 3 042 3 042 – – 7 115 7 115 – – – – – 6 258 6 258 – – 1 573 1 573 – – 8 412 8 412 1 837 1 837 – – – – – 264 264 6 133 6 133 – – – – 4 765 – 4 765 – – – – 1 876 1 876 – 5 880 5 880 – – 4 666 4 666 5 792 5 792 – – – – 599 599

– 34 415 – 34 415 49 49 4 700 4 700

17 606 17 606 17 176 17 176 16 891 16 891 16 664 16 664 16 640 16 640 16 639 16 639 16 607 16 607 16 350 16 350 16 196 16 196 16 186 16 186 16 148 16 148 15 886 15 886 15 648 15 648 15 349 15 349 – 15 247 15 247 14 977 14 977 14 734 175 14 559 14 719 14 719 14 408 14 408 14 188 14 188 14 144 14 144 14 081 14 081 13 846 13 846 13 334 13 334 13 199 13 199 13 138 13 138 13 000 13 000 12 949 12 949 12 848 12 848 12 676 12 676 – 12 529 12 529 12 404 12 404 12 120 12 120 12 062 12 062 12 046 12 046 12 039 12 039 12 033 75 11 958 11 881 11 881 11 729 11 729 11 604 11 604 11 589 11 589 11 558 11 558 11 552 6 787 4 765 11 438 11 438 11 353 11 353 11 316 11 316 – 10 920 10 920 10 896 10 896 10 842 10 842 10 817 10 817 10 691 10 691 10 512 10 512 10 463 10 463

-48.8% 265.4% -8.5% 22.8% 31.7% 2.2% 69.3%

– 29 398 – 29 398 3 360 3 360 – – –

– 31 210 – 31 210 – 15 910 – 15 910 106 52 449 70 – 36 54 1 392 133

– 18 458 – 18 458 – 13 572 – 13 572 – 12 638 – 12 638 – 16 276 – 16 276 – – – – 9 812 9 812 – –

– 40 000 – 40 000 – – – – – – – – – –

1 545 10 400 1 545 10 400 – – – – – – – – – – – – – – 2 446 2 446 2 132 2 132 – – 6 000 6 000 6 700 6 700

– 41 470

– 41 470 – 41 470 – 41 470 – – 3 360 3 360 6 250 6 250

– 50 871 78 51 923 – 51 851 78 72 – 13 245 – 13 245 49 99 181 49 99 181 – 39 200 – 39 200 – 43 944 – 2 957 – 40 987 – 23 773 – 23 773 – 10 315 – 10 315 – – – –

– 40 000 – 40 000 – – – – – – – – –

– 24 865 – 24 865 – 13 236 – 13 236 96 96 – – 96 96 – – – 9 624 9 624 4 235 4 235 9 260 9 260 1 839 – 1 839

-34.9% 22.3% 67.8% 275.1% 69.0%

4 434 22 966 4 434 22 966 – 34 976 – – 2 420 2 420 2 627 2 627 – – – 34 976 32 465

– 11 843 – 11 843 – –

2 484 12 209 2 484 12 209 – –

– 11 682 – 11 682 – – – – – – – – 2 240 2 240

– 32 465 – – – – – – – – – – – – – –

280 13 000 280 13 000 – 627 627 811 811 81 – 81 599 599 233 233 235 235 752 752 1 018 1 018 4 4 7 292 7 292 787 787 2 588 2 588 445 445 616 616 683 683 684 684 – 1 037 1 037 323 323 831 831 26 26 511 511 1 004 1 004 718 – 718 335 335 571 571 267 267 261 261 520 520 721 721 – 1 209 1 209 334 334 1 219 1 219 – 718 718 962 962 689 689 722 722 1 213 1 213 450 450 149 149 – – – – – – – – – – – – – – – – 5 414 5 414 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 3 128 3 128 – – – – – – – – –

-100.0% -4.6% 72.5% 17.4% -5.5% 141.6% 8.7% 35.7% 53.9% -56.5%

16 647 17 514 16 647 17 514 12 578 12 578 2 525 2 525 28 773 28 773 1 929 1 929 2 723 2 723 4 495 – 4 495 – 6 692 6 692 5 591 5 591 444 444 696 696 379 379 521 521 2 705 – 2 705 – 1 046 1 046

– 15 975 – 15 975 96 96 175 – – 8 680 8 680 149 6 092 6 092

– 13 544 – 13 544 – – – – 3 000 3 000 – – 3 000 3 000 – – 8 200 – 8 200 – 8 545 8 545 – – – – – – –

– 17 388 – 17 388 – 34 761 – 34 761 – – – – – – 93 175 – – 4 474 4 474 4 490 4 490 138 147

– 11 478 – 11 478 – – – 3 3 – – – – 741 741 – – – – – – – – – – 6 125 6 125 – – – – – – – – – – – 445 445 – – – – – – – – – – – 2 2 – – 9 224 9 224 – – – – – – – – – – – – – – – – – – – – – – 4 207 4 207 7 982 7 982 2 000 – 2 000 5 772 5 772 9 113 9 113 2 423 2 423 1 675 1 675 8 516 8 516 2 402 2 402 – – 2 974 2 974 – – 3 880 3 880 2 288 2 288 8 100 8 100 7 500 7 500 – 2 309 2 309 5 676 5 676 7 146 7 146 – – 1 485 1 485 3 613 3 613 – – – 8 000 8 000 3 557 3 557 1 000 1 000 – – – – 2 659 2 659 – 6 021 6 021 8 333 8 333 4 348 4 348 – 2 420 2 420 5 063 5 063 1 700 1 700 2 250 2 250 4 917 4 917 1 801 1 801 – –

175 15 550 – 15 401

– 10 650 – 10 650 – – – – – – – – – – – – – – – – – – – – – – – – –

– 13 258 – 13 258 – 10 453 – 10 453 – – 9 189 9 189

268 25 867 – 25 582 – 26 903 – 26 903 – 19 166 – 19 166 – 19 334 – 19 334 235 29 583 235 – – 270 – – 8 297 8 297 – 29 313

– 32 390 – 32 390 – – – – – – 3 008 3 008

8 923 18 271 8 923 18 271 7 406 7 406 11 440 – 11 440 7 390 7 390 – – 8 823 8 823 3 771 3 771 15 015 15 015 – 8 795 8 795 9 219 9 219 1 997 1 997 2 897 – 2 897 – –

286 19 466 286 19 466 4 404 – 4 404 3 992 3 992 – – 3 089 3 089 1 036 1 036 2 831 2 831 – 4 169 4 169 3 453 3 453 1 484 1 484 81 – 81 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

343.2% -9.8% -13.4% -3.4% 93.3% -4.4% -7.8%

– 14 630 – 14 630 – 15 176 – 15 176 – 13 453 – 13 453 – – 6 700 6 700

– 13 333 – 13 333 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 6 993 6 993 6 250 6 250 4 562 4 562 – 9 152 9 152 9 261 9 261 1 900 1 900 4 500 – 4 500 – – – – 4 360 – – – 4 360 4 331 4 331

20 297 3 750 20 297 3 750 4 880 4 880 12 585 12 585 – – – – – – – 16 545 16 545 13 714 1 253 12 461 – – – – – – – – – 11 220 11 220 2 488 2 488 – – 5 057 1 370 3 687 – – – – 11 469 – 11 469 11 447 9 269 2 178 5 395 5 395 – – – – – – 12 540 – 12 540 –

– 21 689 – 21 689 – 31 519 – 31 519 – 37 367 – 37 338 – 29 – 20 506 – 20 506 – 20 220 – 20 220 – – 88 – 380 – – 720 152 36 – – 8 230 8 230 500 99 370 7 902 7 902 357 211 – 7 311 7 311

– 13 433 – 13 433 – 13 755 – 13 755 – – – 563 563 – – – – – – – – 625 75 550 – 4 758 4 758 9 247 9 247 5 974 5 974 3 926 3 926 4 911 4 911 7 295 7 295 9 751 75 9 676

163.3% 34.1% 102.9% 207.2% 145.3% 65.0% 0.0% 23.6% -12.9% 93.9% 33.5% 121.4%

468 23 098 – 22 129

5 027 16 565 5 027 16 565 – – – – – 4 439 4 439 3 430 3 430 6 498 6 498 3 694 – 3 694 7 563 7 563 2 454 2 454 2 211 – 2 211 4 884 4 884 – 5 758 5 758 1 335 1 335 5 556 5 556 17 252 17 252 2 299 – 2 299 – – – – 717 717 1 060 1 060 460 460 441 – 441 1 381 1 381 – – 493 – 493 1 059 1 057 2 1 557 1 557 30 30 456 456 510 510 484 – 484 –

– 16 165

908 33 250

160 13 642 160 13 642 – – – – – – – – – – – – – 6 050 6 050 8 693 8 693 5 235 5 235 – – 7 055 5 682 1 373 8 454 8 454

– 16 165

– 32 682

2 728 10 831 2 728 10 831 – 13 000 – 13 000 – 10 725 – – – 10 725 – 10 429 – 10 429 3 436 3 436 4 750 – 4 750 427 427 – 6 314 6 314

– 12 051 – 12 051 – 16 257 – 16 257 – 26 214 – – – – – 170 170 – 1 148 – – – – 7 506 – 7 506 – 25 066

19.4% 247.1% 35.3% 0.6% -13.0% -100.0% -30.9% 29.7% 135.6% 104.4% 47.3% 86.1% 108.2%

– 11 285 – 11 285 – 13 044 – 13 005 – 39 – 15 798 – 15 798 – – – – – – – – – – – – 8 401 8 401 4 602 4 602 5 292 5 292 7 257 7 257 5 650 5 650 5 025 5 025

– 13 219 – 13 219 – – – – – – – – – – – – – – – – – – – – 1 059 1 059 – – –

167 10 746 – 10 644 167 102 – 20 846 – 20 846 – 18 309 – 18 309 141 18 774 141 18 774 150 150 432 251 – 181 6 929 6 929 4 668 17 4 471 180

2 347 2200.5% -8.7% 3.6% -3.3% 158.5%

– 17 605 – 17 605 – 12 000 – 12 000 – – – – – – – – 1 962 – 1 962 –

100 Neil Cumming 17 717 Nampak 251 1376.5% 17 285 181 286.6% 0.6%

Graphic: FIONA KRISCH

HOW THEY MAKE IT... HOW THEY SPEND IT
November 1 2009

RICH LIST 5

THE GLOBAL RECESSION HAS KNOCKED CRUCIAL ZEROES OFF THEIR WORTH

The rare billionaires
There are 10 fewer of them in SA this year
SIMPIWE PILISO HE financial crisis took its toll on South Africa’s richest people, wiping out almost half the value of their shares. Plunging stock markets, volatile commodities and the collapse of several financial institutions around the world, saw the value of shares owned by the country’s top 10 wealthiest individuals plummet from R114.6billion to R58.5-billion. Research staff of Who Owns Whom analysed holdings of all JSE-listed companies — the only quantifiable way of measuring wealth based on publicly available documents. They could not include property, cash, offshore investments or money held with fund managers in their calculations, so one can assume that people on the list are much richer than they appear.

T

Entrepreneurs, sports stars, holders of patent rights and owners of unlisted companies may be as rich as people on the list, but it is impossible to determine their wealth. In just eight months last year, between March and November, the combined worth of the country’s 10 richest people plummeted by a staggering R61.5-billion. By last November the combined wealth of the 10 individuals stood at R54.1-billion, compared with R114.6-billion on March 31. According to the latest Rich List, released today, Indian steel magnate Lakshmi Mittal, who is officially the richest man in the country, remains at the top of the list, despite his shares in steelmaker ArcelorMittal SA losing more than half their value. The value of his shares in the steel giant dropped from R45.7billion to R16.95-billion in just one year.

The India-born businessman, who tops the list for the fifth consecutive year, has been included on the list by virtue of his shareholding in ArcelorMittal SA. His wealth represents the value of his investment in SA only. Mining tycoon Patrice Motsepe, ranked second on the list, watched the value of his shareholding in African Rainbow Minerals and Sanlam dive from R22billion to R14.2-billion. Nicky Oppenheimer, chairman of the world’s biggest diamond producer, De Beers, saw his shareholding in Anglo American drop from R16-billion to R5.3billion. In sixth position on the Rich List is the controversial Elephant Consortium, an empowerment vehicle that acquired 6.7% of Telkom for R3.5-billion in 2005, and at the time had among its beneficiaries former civil servants, politicians and businessmen. But, like scores of wealthy individuals hit hard by local and international financial turmoil, the Elephant Consortium, headed by Andile Ngcaba and Gloria Serobe, has lost about R783-mil-

lion of its value since March last year. While there were 26 billionaires — with a combined fortune of R118-billion — last year, today there are only 16 in South Africa and their combined wealth is R67.3-billion. The former chairman of the Mvelaphanda Group, Tokyo Sexwale, who now holds the government post of minister of human settlements, just made the cut-off with R1.2-billion worth of shares. The global financial collapse helped two billionaires gain entry into the exclusive list of the country’s 10 wealthiest individuals. Laurie Dippenaar, who holds shares worth R1.9-billion in banking giant FirstRand and RMB Holdings, is now ranked 10th, compared with 12th last year. Pharmaceutical boss Stephen Saad, who was ranked 17th last year, with R1.6-billion worth of shares in Aspen Pharmacare Holdings, is now ranked ninth with R2.2-billion. While Dippenaar and Saad laid claim to a place on the top 10, Bruno Steinhoff and electronics billionaire Bill Venter, who founded the Altron Group with

capital of R12 000 in 1965, dropped in the rankings. Steinhoff’s shareholding in Steinhoff International Holdings dropped from R2.8-billion to R1.6billion. He is now ranked 12th. The financial crisis cost Venter, who is ranked 13th, half the value of his shares in Altron and Altech. His fortune in shares dropped from R3.2-billion to R1.5billion. Cellular operator MTN’s chief executive, Phuthuma Nhleko , ostensibly experienced one of the biggest reversals of fortune, slipping to number 27 on the list from number 11, as the value of his shares in the MTN group sank from R2.3-billion to R637-million, but this reflects the unwinding of Newshelf shares in MTN. Families in the retail sector seem to have dodged the meltdown. Pick n Pay’s Ackerman family, ranked ninth on the list last year, are now positioned fifth. Their R3.2-billion shareholding in Pick n Pay Holdings has barely budged in the 12 months. Pepkor’s Christo Wiese, listed fourth — from fifth position — saw his fortune jump from R4.3-billion to R5-billion.

OUR CLIENT LIST READS LIKE THE WHO’S WHO. BUT WE PREFER NOT TO SAY WHO.
OMcI 15259

Some might consider our strict policy of discretion a hindrance. After all, advertising would be so much easier if we could mention just a few of our many wealthy and influential clients. But then Citadel has never done anything the easy way. We prefer to do it the right way, which is to be discreet at all times. Not that we’re paragons of virtue. It’s just that our wealthcare managers can only do their job of providing highly tailored, efficient and effective solutions to our clients if they know about their dreams and ambitions, their families and their lifestyles; all of which requires an atmosphere of openness and trust. It’s an approach that has attracted many people you may have heard of, but not from us. And that’s the way we think it should be.

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www.citadel.co.za

HOW THEY MAKE IT... HOW THEY SPEND IT

6 RICH LIST
GOLDEN HANDSHAKES ARE CLEAR EVIDENCE OF POOR GOVERNANCE

November 1 2009

What a way to go
For some, poor performance seems to be a highway to riches

DALI MPOFU
ROB ROSE

NEIL CUMMING
payout was R19-million for Paul Hollingworth, the former financial director of SA- and Londonlisted paper company Mondi, as part of his R27-million salary. According to Mondi, Hollingworth left because the finance ministry stipulated that the financial director must be based at the South African head office. Hollingworth decided not to relocate, so he resigned. Mondi’s annual report said that Hollingworth was given a payment “reflecting his salary, car allowance and pension contribution for his 12 months’ notice period”. Shareholders generally do not like “golden handshakes” at all. At Sasol’s annual meeting last December, pointed questions were asked about the R16.1-million paid to former executive Trevor Munday after he left in mid-2007. Sasol’s annual report said this was a restraint of trade payment

TREVOR MUNDAY
take only R2.7-million in “other benefits”, which included leave pay. Not that anyone should feel sorry for Wright, given that he was paid R20.5-million last year, and is not earning that badly up at Country Bird either. Rick Reato, former CEO of the South African arm of ArcelorMittal Steel SA, may have only been shifted to the company’s London office, but he still managed to secure a R2-million termination payment. Signing-on bonuses are handy too. A broker at Alexander Forbes, Bruce Campbell, was paid R13-million as a sign-on fee when he joined in 2007 as executive chairman. After much turbulence he replaced Peter Moyo, who had quit citing “irreconcilable differences” with the board. What is worrying is that golden handshakes seem to be as popular as ever, even if some of them are now being cloaked under the guise of “restraint of

RICK REATO
trade” payments. In this year (not included in this year’s rich list), Steve Booysen was paid a R19.1-million golden handshake for leaving Absa before his contract expired. As Booysen recently spoke about his testy relationship with Absa chairman Gill Marcus, this is a clear sign that bad relations at the board can be expensive for shareholders. But the popularity of golden handshakes is surprising, despite clear evidence that it is poor governance. The new King III report says that “balloon payments on termination do not generally meet the requirements of a fair and balanced remuneration policy”. After all, any director who knows that poor performance will net him a windfall is not incentivised to perform to his peak. Time for the sordid practice to stop.

A

S the debacle at the SA Broadcasting Corporation succinctly illustrates, the quickest route to a swollen bank account is to be handed a pink slip. Former SABC boss Dali Mpofu was given a R12-million “golden handshake” despite leaving the broadcaster in far worse shape than he found it. This continues a fine tradition that reached an arguable high point in 2002 when Coleman Andrews was paid R256-million to leave South African Airways. By comparison, the “termination of contract” benefits paid to Khaya Ngqula to leave the airline last year are small change. While it is tempting to label this a disease of state-owned companies, the private sector has been only marginally less generous with the departing. The largest on termination

to Munday, which boosted his overall package last year to R20.5million. CEO Pat Davies explained that Munday had “strategic and technological” knowledge, so it “wouldn’t have been in our interests if he went to work for a competitor”. Perhaps Davies has a point, but that looks like a particularly handy “restraint of trade payment”. Neil Cumming, the former head of the perpetually underperforming packaging company Nampak, also scored by resigning. Last year, Cumming was paid R10.4-million (more than double his 2007 salary), including R7.9million mostly to compensate him for an “early retirement”, a “retirement gratuity”, and a “restraint of trade” payment. Jeff Wright’s departure after eight years as CEO of agricultural company Afgri saw him

All pay, but no work
SA’S highest paid nonexecutive director, Pieter Cox, took home R24-million from Sasol last year without having a day job at the group. His take-home pay includes R3.7-million in chairman’s fees and R20.3-million from cashing in some shares. There are many people who earn millions from companies without having to clock in each morning. Cyril Ramaphosa earned R8.75-million from six companies, with the bulk coming from his chairmanship of Mondi. None of his earnings in 2008’s Rich List are from the company where he does have a day job — Shanduka. Multiple board member David Nurek earned R6.85-million from eight companies where he holds nonexecutive positions. This includes a R3.5-million gain on Clicks shares (so much for nonexecutives being independent). Bruno Steinhoff, nonexecutive at Steinhoff International, took home R9.8-million last year, including a R6.9-million salary, and the rest in fees. — Marcia Klein

Tapping the mother lode Taking their fair share
MOST of SA’s billionaires have made it rich in mining and commodities, if one looks at the top ranks of the Rich List. Also high up are people who have made it in the retail sectors, financial services, pharmaceuticals and telecommunications. The top three — Lakshmi Mittal, Patrice Motsepe and Nicky Oppenheimer — have all made their fortunes in mining and commodities. Christo Wiese, ranked fourth, has a number of investments, but the bulk of his wealth is in retail through Shoprite. The Ackerman family, through Pick n Pay, are just behind. In healthcare, Aspen and Discovery have made some people very wealthy. Aspen’s Stephen Saad and Gus Attridge are ranked 9th (R2.4-billion) and 19th (R821-million) on the Rich List, while Discovery’s Adrian Gore and Barry Swartzberg are ranked 14th (R1.4-billion) and 21st (R730-million). Among the bankers, Laurie Dippenaar and G T Ferreira, through FirstRand and RMB, are ranked 10th and 11th with R1.9-billion and R1.8-billion respectively. The other member of the FirstRand trio, Paul Harris, is ranked 24th with R666-million. — Marcia Klein IT HAS been profitable to leave poorly paid politics for business. A number of former political bigwigs who have crossed the floor feature on this year’s Rich List. The most notable is Cyril Ramaphosa, whose investments in Standard Bank, Bidvest and Assore place him 17th on the list, worth R988-million. Just above him is Tokyo Sexwale, who has returned to politics — and who can afford to, because his investments in Mvelaphanda (Group and Resources) were worth R1.2billion at the end of March. Among other former notable politicians, Saki Macozoma had shares in Standard Bank worth R392-million. Jakes Gerwel’s shares in Brimstone were worth R58-million while Valli Moosa’s Sun International shares, as well as smaller holdings in Angloplat and Sanlam, were worth R56million. Bulelani Ngcuka’s shares in Buildmax and Basil Read were worth R20-million. Alistair Ruiters’s shares in Metmar were worth R33million. Lulu Gwagwa’s shares in Sun International and Vox Telecom were worth R49million. — Marcia Klein

HOW THEY MAKE IT... HOW THEY SPEND IT
November 1 2009

RICH LIST 7

GLASS CEILING MUCH IN EVIDENCE ON RICH AND EARNINGS LISTS

Big paydays still eluding women
Just not good enough— BWA
JANE STEINACKER
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S

OUTH African women are still stuck in the corporate kitchen, with only three making this year’s Sunday Times Top 100 earnings list. Diane Radley from Altron is 18th on the list (earning R28.5-million, largely made up of R2.7-million salary and R25.3-million on share gains), followed by Cynthia Carroll at 28th, with R22-million. Carroll was ranked 11th last year, when she earned more than R37-million. The only other high-earning woman in the Top 100 earners was Sasol’s Nolitha Fakude, who took home R12.5-million last year, a high salary for a company executive. Another high-earning female executive at Sasol is Christine Ramon, who earned R6.1-million. Nonkululeko Nyembezi-Heita, one of the few women who is CEO of a major company, ArcelorMittal SA, earned R4.9-million — a salary not anywhere near putting her on the list of high earners. At parastatals, Transnet paid its former CEO Maria Ramos R5.8-million last year. Her salary is set to soar this year now that she is at Absa. Among SA’s richest people, there is only one woman in the Top 100. SA’s richest woman, according to the Rich List, is the relatively unknown Sharon Wapnick, whose investments in Octodec Investments and Premium Properties are valued at R195-million, placing her 79th. Antoinette Sedibe’s investment in Keaton Energy, valued at R101million, places her second among women, but only 124th on the list. Mamphela Ramphele is worth R93-million through the value of her Medi-Clinic shares, and Mvelaphanda’s Yolanda Cuba is worth R85million through her shareholding in Steinhoff International. The number of women rising to stronger commercial positions is growing, but at a snail’s pace. The South African Women in Corporate Leadership study conducted by the Business Woman’s Association (BWA) shows that the percentage of executive management posts held by women has increased from 14.7% in 2004 to 25.3%. According to BWA president Basetsana Kumalo: “In real terms, this has grown from 739 to 1 227 women,” of which only 13 hold positions as CEOs and chairmen of boards. While the study showed an increase in top positions held by women, it also showed that these women were being paid significantly less than men and that female representation on boards was still low. The study further showed that even though board representation had increased by 1.4% since 2007, this was actually a downward trend as the number of company boards had increased by 17 in the past year. There were 318 in 2007 and 335 in 2008. This was just not good enough, said the BWA’s Yvette Montalbano.

TEXTOPHOBIA
~ The fear of fabrics.

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HOW THEY MAKE IT... HOW THEY SPEND IT

8

RICH LIST

November 1 2009

FIVE OF THE TOP WALLET-WHACKING WHEELS OF FORTUNE

Simply the best
Head-turners with all the power and luxury money can buy
PORSCHE PANAMERA TURBO MASERATI QUATTROPORTE SPORT GT S hides and wood veneers, it is home to a 16-speaker sound system and lamb’s wool floor mats. Porsche Panamera Turbo: From R1.18-million Forget that ostentatious Cayenne. The Porsche making the biggest impression in the business world at the moment is the new Panamera Turbo, a Bahn-busting supercar that can carry four people in comfort and top out at a speed of more than 300km/h. BENTLEY CONTINENTAL FLYING SPUR Another rapid four-door luxury saloon, the Bentley Continental Flying Spur combines the best of British styling with bulletproof German mechanicals. On the open road it provides impressive performance too, thanks to a 12cylinder engine. Fitted with twin turbochargers, it whips out an incredible 412kW and is capable of running this 2.4-tonne monolith to a top speed of 312km/h. Mercedes-Benz S 65 AMG: From R2.1-million MERCEDES-BENZ S 65 AMG Still the world’s best mainstream limo, Mercedes-Benz’s legendary S-Class delivers uncompromising comfort and power. This classy executive can dash to 100km/h in 4.4-seconds thanks to its V12 bi-turbo engine. Also renowned for its driver safety, the S 65 AMG is equipped with Night View Assist Plus, an innovative optic system that projects a clear, infra-red image of the road ahead onto the LCD display for night driving. — Thomas Falkiner

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RESH from its debut at the 2009 Frankfurt Motor Show, the Ghost is the latest member of the exclusive Rolls-Royce clan. Sleeker and more driverfocused than its bigger Phantom brother, this Roller is endowed with a 6.6-litre twin-turbo V12 engine that is good for 100km/h in 4.7 seconds. Undeniably cool on the outside, the Ghost also has one of the plushest interiors known to man. Handcrafted from the finest

Maserati Quattroporte Sport GTS: From R2-million While the original Maserati Quattroporte was a good enough car to begin with, this new Sport GT S version offers increased straight-line performance and cornering prowess. A stiffened suspension ensures keener handling and that all-new eight-cylinder engine dishes out more power and torque than ever. Bentley Continental Flying Spur: POA

Fine fare Spas an for the truly option to discerning the scalpel
JUSTICE MALALA DON’T go to the Michelangelo Hotel and think you have been places. That’s crass. So is the faux sophistication of Auberge Michel — that’s for people on government expenses, like Paul Mashatile. Show some class. Go here: 1. Assaggi: There are probably more millions per table at this Johannesburg eatery than you will find anywhere else in the country. The food is fantastic (try the chicken or the spaghettini aglio olio, and start with the zucchini fritti). 2. The Fisherman’s Plate: The crab curry is, simply, heaven. 3. The Tasting Room: Be sure to book into the Quartier Francais, home of this restaurant. Then settle down to the eight-course tasting menu paired with local wines. A meal to savour and an experience to treasure. 4. Reuben’s: Unassuming, understated, but heck, the food is so mouth-watering, so well prepared, it is no wonder it flirts with being one of the best in the country. 5. Mariana’s Home Deli: To get a table in the next three months you will have to know someone who knows someone. But when you do finally get there, you will experience one of the most gratifying dining experiences in SA. ADELE SHEVEL THOUGH plastic surgery is still on the menu of the wellheeled, many continue to support non-surgical ways of looking after themselves. At good spas, a day package costs anything from R900 to R4 500. Top spas, according to Sarah McGrath, MD of concierge service Quintessentially, include: ý Ellerman Villa in Bantry Bay, which offers seclusion and privacy. Guests can hire the whole floor should they wish; ý The Island Spa at the One & Only Hotel in Cape Town is so called because different sections are surrounded by water; ý OneWellness in Sandton and Cape Town, where you can get spa and gym membership; ý Equinox Spa at the Cape Royale Hotel and Residence in Green Point and ý Mangwanani Day Spas, with the flagship spa just outside Pretoria. McGrath said clients become loyal to a particular spa and spas become popular through word of mouth. For those who find even getting to a spa is too much like hard work, there is the option of calling the masseur or therapist to your home.

Pay up to Can I buy tee up at you a River Club drink?
JEREMY THOMAS IT IS nice to know there is still something not even the wealthiest person can be guaranteed being able to buy — and that’s the right to play on South Africa’s most exclusive golf course. Membership of River Club in Bryanston is tightly limited and opportunities to play on the course are extremely rare — unless you have a roster of mates who happen to be members. If you do crack the nod, the course is a revelation. Apart from one eyesore on the horizon down Randburg way, there is little to remind you that common people lurk in the vicinity. River Club is tranquil, manicured to perfection and a devil of a test for anyone who thinks it too pretty to be more than a pushover. There may be tougher courses, like Randpark, or ones with a more openly illustrious list of members — like Johannesburg Country Club — but River Club quietly trumps them all. Forget about pitching up with your chequebook and hoping to join. The only time you need concern yourself with annual subs is after you get the discreet tap on the shoulder inviting you to be a member. Costs of membership vary from year to year and it would be considered vulgar to ask what you are in for. CRAIG JACOBS IF YOU are turning up at GT Ferreira’s place and you would like to bring him a tipple that would earn you kudos, Vaughan Johnson of the Vaughan Johnson Wine and Cigar Shop at Cape Town’s Waterfront suggests you consider a bottle of Columella from Malmesbury winemaker Eben Sadie, which earned the highest score in the latest John Platter guide. There is nothing wrong with bringing along a bottle of Billecart-Salmon Rosé (which goes for just R900 a pop from Vaughan Johnson Wine and Cigar Shop), but if you really want to impress a trendy billionaire, follow R&B superstar P Diddy’s lead and cough up R8 050 for a 750ml bottle of Louis Roederer Cristal Rosé, the undisputed king of champagne bling. You will find Cristal at Norman Goodfellows in Illovo, Johannesburg. Norman Goodfellows also sells 50-year-old Glenfiddich, which will set you back R150 000 for the 750ml in a select cask — which is bound to impress Tokyo, though possibly not if you throw in the fact that he could have built five RDP houses for that price.

Breaking bread with billionaires
CRAIG JACOBS BILLIONAIRES love fine dining, and many breathed a sigh of relief in April this year when Sun King Sol Kerzner returned to the local hotel industry with the starstudded arrival of the One & Only at Cape Town’s Waterfront. While the hotel boasts its own private villas, it is Nobu restaurant that has really attracted the pinnacle of the local wealth set. The restaurant under the helm of famed Japanese chef Nobu Matsuhisa is the only Nobu restaurant in Africa and features décor touches like an origami light fixture and a sculpture by SA artist Brett Murray. Who on our Rich List has been known to savour Nobu’s Japanese fine dining experience, which includes black cod Den Miso for R435 or its specially flown-in Wagyu beef (at R385 per 100 grams)? Johann Rupert and Patrice Motsepe have both been spotted there. Also in Cape Town, but further out, on the ConstantiaUitsig wine estate, billionaires with a penchant for Asian and French fusion food from awardwinning chef Luke Dale-Roberts frequent La Colombe. The restaurant is a favourite of Raymond Ackerman and Tokyo Sexwale. It offers a six-course menu for R600 without wine, or R800 per head with the estate’s wines.