Datatec CEO, CFO get massive bonuses
Datatec CEO Jens Montanana took home $6.07 million (R83.2 million) last year, including a hefty $3.5 million (R48 million) "deal completion bonus" for the successful sale of Westcon Americas.
During the financial year, the international ICT solutions and services group completed the sale of Westcon Americas and 10% of Westcon International to Synnex for $630 million in cash, plus up to $200 million payable as a cash earn-out.
According to Datatec's integrated report, for theyear ended 28 February, Montanana took home a basic salary of $1.3 million (R18 million), a $1 million (R13.7 million) yearly bonus (separate from the deal completion bonus), $201 000 (R2.8 million) for his pension, and $26 000 (R356 000) in 'other benefits', which include private medical insurance, permanent health insurance, life assurance and fuel for private vehicles.
Montanana's basic salary of $1.3 million was exactly the same as the year before but his bonus went up 253% from $285 000 to $1 million. Overall, his remuneration was 227% higher than a year ago, when his total package equalled $1.86 million, mostly due to the deal completion bonus.
CFO Ivan Dittrich also took home a $1.75 million (R24 million) deal completion bonus for the Westcon Americas sale and his total remuneration for the year was almost $2.5 million (R34 million).
Dittrich's basic salary was $436 000 (R6 million). He received a bonus of $196 000 (R2.7 million) for the year, along with $65 000 (R890 000) for his pension, and $15 000 (R205 000) in other benefits.
Dittrich's basic salary increased from $286 000 in the previous year to $436 000, but this was because he was only paid for nine months of work in the 2017 financial year as he re-joined the group on 30 May 2016. His bonus also increased from $109 000 the previous year, to $196 000, plus the deal completion bonus.
Dittrich was Datatec CFO from March 2008 to May 2012, when he left to take up the CFO role at Vodacom. He left Vodacom in July 2015 "to pursue his own interests" but returned to the Datatec fold in 2016.
Datatec's seven non-executive directors took home a total of $710 000 (R9.7 million) for the year.
As CEO, Montanana earned a far higher salary than some of SA's ICT and telecoms company bosses. Vodacom CEO Shameel Joosub was paid almost R50.3 million before tax for the year ended 31 March and MTN group CEO Rob Shuter took home a total of almost R40.5 million for the year ended 31 December 2017, for his nine-and-a-half months with the company.
JSE-listed Altron also recently revealed that CEO Mteto Nyati was paid a R6.5 million sign-on bonus to join the group and his total package for the year ended 28 February was R19.7 million.
The Westcon Americas sale may have provided a big payday for the CEO and CFO but it, along with the sale of Logicalis SMC for $42 million, resulted in a mixed bag of results for the group for the year ended 28 February. Datatec reported an overall headline loss per share but positive earnings per share from continuing operations.
Datatec is an international ICT solutions and services group operating in more than 50 countries across North America, Latin America, Europe, Africa, Middle East and Asia-Pacific. The group's service offering spans the technology, distribution, integration and consulting sectors of the ICT market.