GIPF spent N$43m on 12 executives in 2024
N$81 000 annual retainer for board chair
Total staff costs for 2024 amounted to N$259 million, accounting for 66% of the fund's total operational expenditure of N$395.6 million.
The Government Institutions Pension Fund (GIPF) spent a total of N$43.2 million on remuneration for its 12 key executives during the 2024 financial year, according to its latest annual report.
The fund, which includes CEO Martin Inkumbi among its key executives, paid an average monthly package of N$1.59 million per executive.
The total remuneration figure included a basic salary of N$1.083 million, alongside various allowances and benefits. These included a car allowance of N$103 576.56, medical aid contributions totalling N$27 906, a social allowance of N$729, a cellphone allowance of N$3 378, a housing subsidy amounting to N$211 672.38 and a pension fund contribution of N$164 020.
In explaining its remuneration policy, GIPF said executive pay is benchmarked against industry best practices using PwC’s Remchannel platform, which compares compensation across multiple sectors and industries.
Executives were also eligible for performance-related bonuses and other incentives.
These included a potential performance bonus of N$212 048, annual 13th cheques and other bonuses amounting to N$6.7 million, performance bonuses worth N$16.4 million and long-service bonuses totalling N$725 000.
Notably, the fund’s policy does not include malus or clawback provisions in cases of executive misconduct, fraud, dishonesty or actions resulting in financial or reputational damage.
At the governance level, the board chairperson received an annual retainer of N$81 477, while trustees and non-trustees serving on the main board earned an annual retainer of N$66 557. For service on board committees, the chairperson was entitled to a further N$39 585 annually and trustees or non-trustees received N$25 534.
Meeting attendance was also remunerated, with the board chairperson earning N$11 246 per main board meeting and trustees receiving N$6 359. For committee sittings, the chairperson received N$5 460 per session, while trustees were paid N$3 726 per session.
Strong financial performance
GIPF recorded a strong financial performance in 2024, with the fund’s asset value rising from N$151 billion to N$167 billion – an increase of 11%. Contributions received during the year amounted to N$4.8 billion, reflecting a 3% increase compared to the previous year.
Benefit payments, meanwhile, totalled N$6.3 billion, which marked a 9% decrease from the prior year. The value of investments managed by asset managers stood at N$117.1 billion, while direct investments amounted to N$10.1 billion. The GIPF treasury portfolio was valued at N$40 billion during the review period.
Active membership increased by 2.24%, from 97 512 in 2023 to 99 722 in 2024. Benefit payments dropped by over N$585 million compared to the N$6.9 billion paid out in the previous year. As a result, the benefit contribution ratio now stands at 132%. The fund’s cost-to-serve ratio also saw a slight increase, moving from 1.78% in 2023 to 1.9% in 2024.
The GIPF’s investment return improved significantly, with the fund recording a 13.2% return amounting to N$18 billion. This was a notable increase from the 7.7% return – or N$6.5 billion – achieved in the previous year and is attributed mainly to improved investment performance over the period.
Total employee costs for the year amounted to N$259 million, making up 66% of the fund’s total operational expenditure of N$395.6 million.
The fund, which includes CEO Martin Inkumbi among its key executives, paid an average monthly package of N$1.59 million per executive.
The total remuneration figure included a basic salary of N$1.083 million, alongside various allowances and benefits. These included a car allowance of N$103 576.56, medical aid contributions totalling N$27 906, a social allowance of N$729, a cellphone allowance of N$3 378, a housing subsidy amounting to N$211 672.38 and a pension fund contribution of N$164 020.
In explaining its remuneration policy, GIPF said executive pay is benchmarked against industry best practices using PwC’s Remchannel platform, which compares compensation across multiple sectors and industries.
Executives were also eligible for performance-related bonuses and other incentives.
These included a potential performance bonus of N$212 048, annual 13th cheques and other bonuses amounting to N$6.7 million, performance bonuses worth N$16.4 million and long-service bonuses totalling N$725 000.
Notably, the fund’s policy does not include malus or clawback provisions in cases of executive misconduct, fraud, dishonesty or actions resulting in financial or reputational damage.
At the governance level, the board chairperson received an annual retainer of N$81 477, while trustees and non-trustees serving on the main board earned an annual retainer of N$66 557. For service on board committees, the chairperson was entitled to a further N$39 585 annually and trustees or non-trustees received N$25 534.
Meeting attendance was also remunerated, with the board chairperson earning N$11 246 per main board meeting and trustees receiving N$6 359. For committee sittings, the chairperson received N$5 460 per session, while trustees were paid N$3 726 per session.
Strong financial performance
GIPF recorded a strong financial performance in 2024, with the fund’s asset value rising from N$151 billion to N$167 billion – an increase of 11%. Contributions received during the year amounted to N$4.8 billion, reflecting a 3% increase compared to the previous year.
Benefit payments, meanwhile, totalled N$6.3 billion, which marked a 9% decrease from the prior year. The value of investments managed by asset managers stood at N$117.1 billion, while direct investments amounted to N$10.1 billion. The GIPF treasury portfolio was valued at N$40 billion during the review period.
Active membership increased by 2.24%, from 97 512 in 2023 to 99 722 in 2024. Benefit payments dropped by over N$585 million compared to the N$6.9 billion paid out in the previous year. As a result, the benefit contribution ratio now stands at 132%. The fund’s cost-to-serve ratio also saw a slight increase, moving from 1.78% in 2023 to 1.9% in 2024.
The GIPF’s investment return improved significantly, with the fund recording a 13.2% return amounting to N$18 billion. This was a notable increase from the 7.7% return – or N$6.5 billion – achieved in the previous year and is attributed mainly to improved investment performance over the period.
Total employee costs for the year amounted to N$259 million, making up 66% of the fund’s total operational expenditure of N$395.6 million.
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