Datatec CEO Jens Montanana earned almost R10.22 million in the group`s latest financial year.
According to the group`s annual report for the year to end-March, which contains a full disclosure of its directors` salaries, the total amount of salaries, bonuses and benefits paid to executive directors dropped to $2.84 million from $4.07 million in the 2001 financial year.
However, the 2001 figure was inflated by the payment of bonuses of about $2.3 million relating to the sale of UUNet. There were also seven executive directors in 2001 and six in 2002.
<B>Datatec directors` remuneration</B>
Datatec executive directors` salaries for the year to end-March 2002
Director, salary, bonus, benefits, total:
Jens Montanana:
$623 081; $311 296; $127 311; $1 061 688
Robin Rindel:
$284 522; $142 260; $44 887; $471 669
Jon James:
$113 410; $51 948; $17 138; $182 496
Stephen Lawrence:
$358 617; $80 689; $89 654; $528 960
David Pfaff:
$111 149; $29 732; $12 790; $153 671
Alan Smith:
$308 712; $125 000; $4 951; $438 663
The UUNet bonuses were paid to Montanana ($544 277) and directors Robin Rindel ($517 063) and Mendel Karpul ($1.22 million)
Montanana`s basic salary in the 2002 financial year was $623 081 (2001: $624 798). He received a bonus of $311 296 ($616 877). With benefits of $127 311 ($64 527), his total package amounted to $1.06 million or R10.22 million, compared with $1.31 million or R9.6 million the previous year.
The table on the left shows the payments made to each executive director in the 2002 financial year.
The remuneration report says the remuneration committee`s overall strategy is to ensure that executive directors and senior managers are rewarded for their contribution to Datatec`s operating and financial performance at levels which take into account the international IT industry, market and country benchmarks.
"In order to promote an identity of interest with shareholders, share incentives are considered to be critical elements of executive policy. The basic objective of the policies is that the executive directors should receive remuneration which is appropriate to their scale of responsibility and performance and which will attract, motivate and retain individuals of the necessary calibre.
"The underlying philosophy of the remuneration committee is to provide base pay at median levels by comparison with relevant comparator companies internationally and to provide the potential for upper quartile earnings when corporate and individual performance justify it.
"In the application of its policy, the remuneration committee has regard to the necessity of being competitive in the different parts of the world in which the group operates, particularly the US and the UK."
The annual report also shows that Montanana owned a total of about 5.59 million Datatec shares at the year-end. Rindel owned 106 557 and Stephen Lawrence 45 000. Of the non-executive directors, Karpul owned 355 200 shares, Chris Seabrooke 300 000 and John McCartney 233 000.
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