Former Naspers CEO Bob van Dijk Receives R330 Million and More to Come

Bob van Dijk, the former CEO of Naspers, received a substantial R330 million from the company over the past year, with additional payments expected in the current financial year.

Naspers disclosed the remuneration details for Van Dijk covering the period from April 1, 2023, to March 31, 2024, along with his agreed severance package.

According to the latest Naspers annual report, Van Dijk’s total compensation amounted to $18.269 million. At the current exchange rate of R18.07/USD, this translates to R330 million.

Breakdown of Remuneration

Van Dijk’s remuneration package included:

• A base salary of $1.469 million
• Naspers performance share units valued at $3.714 million
• Prosus performance share units worth $4.938 million
• Naspers Global eCommerce share appreciation rights totalling $4.350 million
• Naspers and Prosus share options amounting to $1.441 million

The severance payment was considered an appropriate, all-inclusive compensation for the loss of office.

Consultancy Agreement

Van Dijk agreed to remain available for consultation and guidance, entering into a consultancy agreement effective from April 1, 2024, through September 30, 2024. For his consultancy services to Naspers and Prosus, he will receive a gross fee of €113,436.18 per month (approximately R2.2 million per month).

Additional Payments

Naspers indicated that Van Dijk would be entitled to an additional gross payment to compensate for the lapse of certain long-term incentives, should the performance conditions for the Prosus and Naspers performance share units (PSU) granted in 2021 be met. This payment will equal the amount he would have received if the relevant PSU awards had continued vesting per the scheme rules and will be payable on June 21, 2024, and August 26, 2024, respectively.

Departure and Legacy

On September 18, 2023, Naspers and Prosus announced that Van Dijk had stepped down as chief executive and director. The boards of both companies mutually agreed on his immediate departure. However, Van Dijk will continue to assist with the transition and serve as a consultant until September 30, 2024.

Van Dijk took over from former Naspers CEO Koos Bekker in 2014 and has been the CEO of Prosus since its listing in 2019. During his tenure, he played a significant role in establishing the group as a leading global consumer internet company, despite facing criticism for destroying shareholder value through several poor investments.

Shareholder Discontent

Van Dijk’s leadership and Naspers’ management have faced significant criticism for destroying shareholder value. Merchant West Investments Value Fund manager Piet Viljoen has been a vocal critic, pointing out that Naspers management destroyed tremendous shareholder value while becoming fabulously wealthy in the process. Despite inheriting a cash cow in Tencent, the management’s bad investments and deals led to significant cash losses for shareholders.

Shareholder discontent was evident when 79.40% of Naspers N shareholders voted against the company’s remuneration policy at the annual general meeting in August 2023. However, Naspers A shareholders, who have voting rights equivalent to 1,000 N shares per A share, voted in favour of the policy, overriding the objections of N shareholders.

Future Outlook

As Naspers moves forward, the focus will likely be on rebuilding trust with shareholders and demonstrating effective management to enhance shareholder value. The company’s future actions and strategic decisions will be closely monitored by investors and industry analysts alike.

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