South African executive Mike Schmidt, the former CEO of African Rainbow Minerals (ARM), the South African mining company founded by billionaire Patrice Motsepe, received a compensation package amounting to R87.62 million ($4.54 million) for his pivotal role in the group’s financial performance at the end of its 2022 fiscal year.
This compensation package marks an impressive 64.09-percent increase compared to the previous year’s reward of R53.4 million ($2.76 million), which mirrors his importance in the group. Schmidt’s compensation package includes a base salary of R8.24 million ($426,385) and a short-term incentive of R9.71 million ($502,686).
He also received a long-term incentive award of R34.76 million ($1.8 million) from South Africa’s pioneering Black-owned mining company in recognition of his unwavering commitment and extensive expertise as a seasoned financial professional.
The South African executive, who concluded an impressive twelve-year tenure as CEO of ARM, transitioned to the role of executive for growth and strategic development at ARM on May 1, 2023, following the appointment of Velile Phillip Tobias as the company’s new CEO and executive director.
Based in Johannesburg and founded by Motsepe in 1997, ARM holds strategic assets in iron, coal, copper, gold, platinum, and other precious metals. Schmidt’s name echoes through the corridors of ARM, a diversified mining and mineral company. His journey with ARM began in July 2007 when he assumed the role of executive for platinum operations, subsequently becoming the vice president for Limpopo operations.
Schmidt was CEO and executive director at ARM from 2011 to 2023. During his tenure, he led ARM to impressive financial milestones. Nevertheless, the group’s headline earnings dipped by 13 percent from R13.1 billion ($678.12 million) in 2021 to R11.3 billion ($584.94 million) in the fiscal year 2022, impacted mainly by lower commodity prices.
Under his leadership as CEO, the mining company’s total assets expanded, swelling from R53.1 billion ($2.75 billion) in 2021 to R59.17 billion ($3.06 billion) in the closing year of 2022.
Beyond his executive and governance responsibilities, Mike Schmidt holds a minority 0.274-percent stake in ARM, equivalent to 616,454 ($4.94 million). This and his impressive compensation package make him one of South Africa’s most affluent executives.
