One JSE-listed company paid its CEO more than what the business made

Altvest Capital, a JSE-listed investment holding company that invests in private equity, paid its chief executive more than the total revenue of the company.

In the last financial year, Altvest generated revenue of R7.6 million. In the same year, it paid its CEO, Warren Wheatley, R8 million.

Unsurprisingly, Altvest reported operating expenses of R29.4 million, nearly four times higher than its revenue.

Altvest, founded by Wheatley, is an investment holding company operating in the financial services sector in South Africa.

The company explained that it facilitates access to bespoke investments and simultaneously provides funding to South African businesses.

It focuses on initiatives to facilitate funding for SMEs and encourages the participation of retail investors in the financial markets by allowing them to invest in bespoke investments.  

“Altvest’s mission is to provide SMEs with access to funding for their growth ambitions, via both debt and equity funding solutions,” it said.

Altvest allows the South African public to participate in the funding through either equity or debt listed instruments.

The company listed on the Cape Town Stock Exchange (CTSE) in May 2022 and listed its shares for trade on A2X Markets on 6 September 2022.

On 14 October 2024, Altvest Capital was listed on the Johannesburg Stock Exchange’s (JSE’s) Alternative Exchange (AltX) Board as part of its bid to increase liquidity.

Through this listing, Altvest Capital transferred its listing from the Cape Town Stock Exchange to the JSE’s AltX Board.

By listing on the JSE, Altvest can tap into a broader investor base, facilitating capital raising and improving the company’s ability to finance growth initiatives.

“Listing on the JSE is a strategic move that will help us reach more investors and enhance these investment and funding opportunities for all,” Wheatley said.

At the listing, he stated that Altvest’s future projects will include venture capital, renewable energy, sustainable agriculture, and blockchain-led initiatives.

Altvest Capital’s latest results

On 2 June 2025, Altvest Capital released its audited annual financial statements for the year ended 28 February 2025.

The results showed that Altvest generated revenue of R7.6 million, primarily from asset management and administration fees.

Altvest reported operating expenses that were almost four times greater than its revenues at R29.4 million. It also reported R1.7 million in interest expenditure.

Altvest’s cash flows from operating activities show that the group had a net cash drain of R26.3 million from its operating activities.

Despite the poor cashflow performance, Altvest reported a R86.2 million fair value gain in its income statement for the 2025 year, resulting in a net profit of R48 million.

A fair value gain is a line item on the income statement that shows an increase in an asset’s value within the group.

An increase in the value of a company’s assets represents a profit on paper. However, there was no exchange of goods or flow of cash.

The R48 million profit reported in the company’s income statement is therefore only due to a book entry.

Altvest stated that the significant fair value gain related to an increase in the value of the Altvest Credit Opportunity Fund (ACOF), a private credit fund.

The ACOF’s value was increased by R90.8 million, almost doubling the fund’s valuation over the reporting year to R222 million.

Altvest stated that the fair value gain was primarily due to the ACOF’s improvement in its loan book performance, higher interest income and lower default rates.

The ACOF increased its net revenue significantly, from a negative R220 million to a positive R11.5 million.

However, its expenses also increased significantly. It experienced a R7 million impairment of loans and operating expenses of R21.3 million.

This resulted in the ACOF reporting a significant increase in its net loss before tax, from R7 million to R16.9 million.

The one-year valuation increase in the ACOF investment was more than double ACOF’s entire revenue, despite the fund’s net loss deepening by 143%.

The total value of the ACOF currently stands at R222 million, six times greater than its total revenue.

Altvest CEO Remuneration

What is striking about Altvest’s latest financial results is the large salary its chief executive, Warren Wheatley, received.

Over the 2025 financial year, Wheatley received a guaranteed base salary of R5.4 million and a R2.6 million bonus. This resulted in a total pay package of R8 million.

This exceeds the group’s total revenue of R7.6 million. It is uncommon for any company to pay a single individual more than what the whole company generates.

Altvest Capital responds

As the Board of Directors of Altvest Capital, we acknowledge the recent public discussion surrounding our CEO’s remuneration.

While we respect the importance of transparency in public discourse, we must express our disappointment at the article’s framing, which omits critical context and presents a misleading picture of both our business model and our CEO’s compensation.

We are a listed investment company. As such, Net Asset Value (NAV) growth and long-term capital appreciation are the primary performance benchmarks, not annual revenue, which can misrepresent performance in investment-led businesses.

Over the past three years, Altvest’s NAV per share has increased more than 13-fold, growing shareholder equity from R8.5 million to R126 million with minimal dilution.

Our CEO, Mr. Warren Wheatley, has played an instrumental role in this growth, not only through leadership but also through significant personal financial support, including:

• Over R26 million in direct capital injections.
• A R75 million personal guarantee, including pledging his own Altvest shares, his personal assets and underwriting operating costs.
• These contributions have ensured financial resilience and allowed Altvest to execute on its long-term growth strategy.

While our audited financials confirm that Mr. Wheatley earned R8 million in the most recent financial year, this must be viewed in full context:

• His 4-year average salary is R2.5 million, the lowest among peers in the listed financial sector.
• His compensation is performance-based, tied to agreed targets; most notably, the dramatic NAV growth that directly benefits shareholders.
• As Founder and CEO, Mr. Wheatley has repeatedly prioritised the business over personal income, including drawing zero salary in the 2024 financial year.

Summary

• The CEO’s remuneration is linked to real, quantifiable performance.
• NAV/shareholder equity grew from R8.5m to R126m (13.5x) over two years.
• R26m+ in seed/working capital + R75m personal guarantee by the CEO.
• 4-year average salary: R2.5m (lowest in peer group).
• His full compensation history and financial contributions are publicly disclosed in our audited reports.

We firmly believe that isolating a single year’s remuneration without considering the full strategic, financial, and historical context does a disservice to stakeholders seeking an honest understanding of our business.

Altvest Capital remains deeply committed to good governance, shareholder value, and transparency.

Our Board stands fully behind our CEO and the foundational role he continues to play in advancing Altvest’s mission of inclusive financial innovation and SME empowerment in South Africa.