Business Insider Edition

Here’s what the numbers Grindrod Bank didn’t want to disclose show – a 39% pay hike for its top executives

Phillip de Wet , Business Insider SA
 Apr 25, 2018, 08:30 PM
  • Grindrod Bank published annual financial statements in which its payment to executive and non-executive directors were redacted.
  • The redaction was poorly done, and Business Inside reconstructed the redacted page.
  • It shows that the three top executives received a combined increase just a hair shy of 39% in 2017.

This article has been updated below.

In the 2017 year the three top executives at Grindrod Bank received a total-package pay hike of 38.92%*, the company's reconstructed financial statements show.

For the year to the end of December its managing director David Polkinghorne and executive directors Andrew Blades and Sue Scott shared total remuneration of R23.9 million*.

In the prior year their total pool had been nearly 40% less at R17.2 million.

A significant chunk of the increase came in the form of what the bank labelled "bonus and incentive schemes."

The increase came as Grindrod was repeatedly heavily criticised for its involvement of government social grants, and after it was reportedly targeted for takeover by the Gupta family.

Update: 'We were maybe a little bit naive': Grindrod Bank has un-redacted its executive pay numbers

It most recently attracted controversy for saying it had to make social-grant recipients pay bank charges because the SA Social Security Agency (Sassa) had withdrawn subsidies.

Grindrod Bank published only a redacted version of the page in its financial statements on executive and director remuneration. By the time of publication it had not yet honoured a request by Business Insider South Africa for the numbers.

However, a PDF published on its website was poorly enough redacted that it could be reliably reconstructed.

The reconstruction shows that the bank had paid just over R23 million* to executives for “managerial services”, an increase of 41.4%.

* UPDATE 
Grindrod Bank subsequently published an un-redacted version of the document reconstructed by Business Insider.Those formal numbers differed from the figures that were badly hidden in its original statement.
The published numbers show combined payments to its three top executives of R24.5 million (not R23.9 million as reported here), which was is an increase of 42.22% (not 38.92%).
The un-redacted document records "managerial services" payments as R23.6 million (rather than just over R23 million), an increase of 44.9% (not 41.4%).

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