former Naspers CEO Bob van Dijk's exorbitant annual payout of R330 million has ignited a fierce debate, as over 400 Media24 employees face the looming threat of job losses. The controversial revelation, reported by BusinessTech, has sparked moral and financial concerns, with industry insiders questioning the proper allocation of funds while hardworking individuals fear for their livelihoods.
Solidarity CEO Dirk Hermann expressed his dismay at the staggering payment and the potential consequences for Media24 employees. "About 400 people will be laid off. Only Van Dijk's compensation can wipe out the anticipated loss of the titles. It's just totally overboard," Hermann stated bluntly. The union leader's sentiment reflects the growing discontent among workers as they witness top executives reaping astronomical rewards while their own futures hang in the balance.
The restructuring plans recently announced by Media24 have sent shockwaves through the industry. With the print editions of prominent publications like Beeld, Rapport, City Press, Daily Sun, and Soccer Laduma set to be discontinued, uncertainty looms for many dedicated journalists and support staff. Media24 CEO Ishmet Davidson revealed that the company's remaining focus would shift towards digital platforms, leading to the closure of digital (PDF) editions of Volksblad, Die Burger OosKaap, and the digital hub SNL24.
Meanwhile, Bob van Dijk, who officially stepped down in September last year, continues to enjoy his tenure at the media conglomerate until September. Naspers' remuneration report for the fiscal year spanning from April 2023 to March 2024 shed light on the mind-boggling figures behind Van Dijk's compensation. With a consultancy agreement in place, he stands to receive a monthly payment of R2.2 million until the conclusion of his tenure. In addition to a basic salary of $1.4 million (approximately R25 million) and a $1.4 million bonus, various share options culminated in a whopping $18.27 million total single salary payout for the year, including a $747,000 severance payment.
BusinessTech's report highlighted the eye-popping statistics surrounding Van Dijk's earnings, stating, "Put another way, the latest pay data shows that the former Naspers CEO earned just under R1 million a day for the past financial year, adding to the insane salary he has taken home since being appointed Naspers chief in 2014." The cumulative effect of these figures reveals that Van Dijk earned over R1.8 billion during his remarkable 10-year tenure at the company, equating to nearly R500,000 per day.
Solidarity's CEO did not hold back in his criticism of the "improper flow of money" towards top management, particularly when juxtaposed against the closure of esteemed titles like Rapport and Beeld due to financial constraints. Hermann raised a poignant example, stating, "While he walks away with hundreds of millions, a journalist with a nine-month-old baby writes to us about the crisis if she is retrenched." The stark contrast between Van Dijk's opulent compensation and the struggles faced by hardworking employees further fuels the public outcry surrounding the issue.
As Solidarity fights to secure a basic severance package for affected employees, Van Dijk walks away with a severance package of R13.5 million and continues to receive a monthly payment of R2.2 million. The union plans to hold Media24 accountable for these discrepancies, demanding answers on behalf of its members. Hermann's scathing remarks encapsulate the growing sentiment that the current remuneration structure and the allocation of resources need to be critically scrutinized and revised for the sake of fairness and justice.
The unfolding drama surrounding Van Dijk's lavish package and the dire circumstances faced by Media24 staff have thrust the issue of executive compensation and job security into the spotlight.
