Renowned South African business magnate Steve Phiri is set to receive $2.8 million following the completion of Impala Platinum’s (Implats) acquisition of Royal Bafokeng Platinum (RBPlat). The historic deal solidifies Impala Platinum’s position as a global leader in platinum group metals (PGMs) production.
Official documents have confirmed that Phiri, a prominent figure in South Africa’s business landscape and the Chief Executive Officer (CEO) of (RBPlat), will receive R53.4 million (equivalent to $2.81 million) as part of the payout.
Neil Carr, RBPlat’s Chief Operating Officer, will also reap the benefits, collecting R32.28 million ($1.7 million). This combined compensation amounts to R85 million ($4.48 million) for the two executives.
These substantial payments stem from accelerating a long-term “deferred” incentive scheme in line with the conditions of the takeover process. This scheme granted Phiri a pro-rated accelerated vesting of a portion of his RBPlat incentive scheme awards, aligned with the regulations of the relevant schemes.
In 2022, Phiri received R62 million ($3.26 million) due to the pro-rata acceleration of the forfeitable share plan (FSP) and the bonus share plan. Similarly, Neil Carr’s compensation reached almost R64 million ($3.36 million), with R37 million ($1.94 million) attributed to “termination benefits” in the company’s preceding annual report.
Originally, Steve Phiri’s contract was extended for one year starting in April. However, given the prolonged nature of the takeover proceedings, RBPlat extended his contract further.
The company underscored the significance of retaining both Phiri and Carr during this period of uncertainty to ensure the smooth and secure operation of the company, as finding replacement executives with the requisite expertise remained a challenge.
RBPlat clarified that the CEO’s incentive to continue with the company and adhere to the contract was bolstered by exercising discretion under the applicable scheme rules. This decision enabled the vesting of the remainder of Phiri’s long-term incentive awards that would have otherwise been forfeited upon retirement.
In the event of mutually agreed termination of employment with an executive during a change of control, the executive would receive full vesting of all outstanding awards, along with one year’s guaranteed remuneration, and as a result of this, an additional payment of R7 million ($369,000) for Steve Phiri and R5 million ($263,300) for Neil Carr over the next year.
