Pepkor COO earns R16 million more than the CEO.
Pepkor Holdings’ chief operating officer (COO), Sean Cardinaal, who is based in London, United Kingdom, earned a total salary package exceeding R46 million, making him the group’s highest-paid executive.
Pepkor was founded in Upington, Northern Cape, in 1965 by Renier van Rooyen, but it is today headquartered in Cape Town and led by Pieter Erasmus. It is a holding company to PEP, Ackermans, Tekkie Town, Shoe City, Dunns, Incredible Connection, and HiFi Corp, among others.
The group released the revised remuneration report for the financial year 2025 earlier this week, detailing how the head of operations can outearn the CEO.
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Pepkor COO outearns CEO
Usually, a CEO is the highest-paid individual in a company due to several factors, including qualifications, experience, and responsibilities. The CEO stands as the face of pressure and power, trusted with steering a company through stormy seas of inflation, consumer hesitancy and relentless competition.
But at Pepkor, its CEO earned more than R30 million for the period, R16 million less than its COO. Erasmus was appointed CEO in 2022, but had previously served as the group’s managing director.
According to the remuneration report, he received a basic salary of R16.8 million, a decrease from the R18.8 million he earned in 2024. Erasmus also received benefits worth R242 000 and short-term incentives worth R13.3 million.
Pepkor COO salary package
Cardinaal was appointed COO in 2022. Before this role, he served as the COO for Pepco Group in Europe.
According to the report, he received a basic salary of R17.6 million, which is more or less the same as the previous year. Cardinaal received benefits worth R1 million and short-term incentives worth R12 million, including long-term incentives worth R16.2 million.
Pepkor said Cardinaal receives more than the CEO because he is based in London and his package includes different benefits.
“Due to the COO being a non-South African resident, the company contributions and benefits amount includes expatriate allowances as part of his employment agreement,” said the group. “This amount includes taxable benefits such as, inter alia, travel expenses.”
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Incentives
Pepkor added that Cardinaal operates on a fixed-term contract, commuting to South Africa for his duties.
Short-term incentives and long-term incentives are awarded to executives for performance over different timeframes. Short-term incentives focus on annual goals (e.g., profit, revenue), often paid in cash, while long-term incentives reward sustained, multi-year performance (e.g., total shareholder return, strategic growth) through deferred equity or cash
Both aim to motivate and retain talent by linking pay to specific company and individual achievements, but short-term incentives are for immediate results, and long-term incentives are for building lasting value.
R24 million for the CFO
Pepkor’s chief financial officer, Riaan Hanekom, received a total salary package of R24.6 million for the year.
He is the lowest-paid executive, with a basic salary of R7.2 million, a massive increase from the R4.7 million he earned in 2024. Hanekom also received benefits worth R868 000.
He was appointed CFO in 2018, transitioning from his role as CFO of Steinhoff Africa Retail (STAR) shortly after Pepkor’s listing. What boosted his package are short-term incentives and long-term incentives. Hanekom received short-term incentives worth R5.6 million and long-term incentives worth R10.8 million.
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