Shoprite CEO Pieter Engelbrecht has seen his total remuneration rise by nearly R4 million for the 2025 financial year, bringing his overall package to R87 million, amid a strong financial performance by the retail giant.
According to the group’s annual financial report for the year ending June 2025, Engelbrecht received an inflation-aligned 6% salary increase, taking his basic pay to R21 million.
This is compared to headline inflation of 3.0% in June 2025, down from 5.1% in 2024.
Vested shares
The biggest contributor to the CEO’s increased remuneration came from vested shares under the company’s Employee Share Plan (ESP), which totalled R30 million – a significant rise year-on-year.
Additionally, Engelbrecht earned R18.1 million from a short-term incentive (STI), while R15.6 million from the new Executive Deferred Incentive (EDI) has been deferred in shares, payable in September 2027.
The STI payout reflects a 96.9% performance score, slightly below his 97% score from the previous year.
While the EDI is accounted for in the total remuneration figure, the payment will only be realised after a two-year deferral period.
Strong Company Performance
Engelbrecht’s earnings come against the backdrop of an exceptional financial year for Shoprite, which reported:
- Revenue of R257 billion, up 8.6% from the prior year
- Profit of R7.6 billion, up 21.9%
- Earnings per share up 22% to 1,401.2 cents
- Total dividend up 7.9% to 781 cents
Shoprite’s core South African supermarket chains, Shoprite and Usave, grew turnover by 5.9%, while Checkers continued its upward trajectory with 13.8% growth, contributing R11.6 billion more to group revenues.
Engelbrecht attributed much of the growth to the ongoing rollout of the “FreshX” store format, which targets higher-income customers by offering a premium in-store experience focused on fresh produce and quality.
“Our strategy to continue the conversion of existing stores to our winning FreshX format, whilst opening stores in areas where we are underrepresented, remains one of our top priorities,” he said.
Expansion and Consolidation
In South Africa alone, Shoprite opened 225 new stores, taking the total to 2 577. Group-wide, the store footprint grew by 269, with the total now standing at 3 908 outlets.
This expansion comes despite the retailer exiting Ghana and Malawi, following earlier pullouts from Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo, as it shifts focus back to its core South African market.
For the 2026 financial year, Shoprite plans to open another 223 stores, reinforcing its domestic growth strategy.
Leadership and Compensation Context
Engelbrecht has served as CEO since 2017 and has overseen a strategic shift in Shoprite’s footprint and operations.
While his rising remuneration has drawn some attention, it is directly tied to the company’s strong financial and operational performance.
His R87 million pay package includes:
- R21 million salary
- R18.1 million STI (cash and deferred awards)
- R30 million in vested shares
- R15.6 million deferred EDI in shares (to be paid in 2027)
- Decreased benefits and qualifying dividends
The implementation of the EDI in 2024 aims to align executive incentives more closely with long-term shareholder value and company performance.
Which South African supermarket is your preferred choice for your month-end shopping?
Let us know by clicking on the comments banner below …
