The Golden Handshake: EOH’s CEO Exits with a Whopping R15-Million Bonus
In a bombshell revelation, it emerged that EOH Holdings paid its former CEO, Stephen van Coller, a staggering R15-million in exit bonuses, on top of his already hefty salary and bonuses. The payout, revealed in the company’s annual financial statement, has left many questioning the company’s remuneration policy.
But what was even more shocking was that the payment was not part of a negotiated exit deal, but rather a goodwill gesture from the company’s board, in recognition of Van Coller’s decision to forgo a bonus when he joined EOH from MTN Group in 2018.
The payment, which amounts to almost 2.5% of EOH’s interest-bearing bank loans, has left some shareholders fuming, especially given the company’s troubled financial situation. The annual financial statement revealed that the company struggled with a distressed balance sheet, with Van Coller’s time at the company focused on selling off assets to right the ship.
But the real kicker is that the payment comes amidst controversy over EOH’s remuneration policy. In 2023, the company failed to secure 75% approval for its remuneration policy, with only 50% of shareholders voting in favor. This has led to concerns that the company is prioritizing executive payouts over shareholder value.
It’s no wonder that the payment has raised eyebrows. The total payout, including long-term share incentives, topped R32 million, making it a lucrative exit for Van Coller. The question is, what does this say about the company’s priorities? Is it truly committed to its shareholders, or is it more concerned with padding its executives’ pockets?
The answer lies in the details, but one thing is certain: EOH’s decision to part ways with R15 million has left some serious questions hanging.