In a striking illustration of performance-driven compensation, Hylton Kallner, chief executive of Discovery Bank and Discovery South Africa, secured a total remuneration package worth R61.1 million for the financial year ending 30 June 2025. This figure surpassed that of his superior, group chief executive Adrian Gore, by more than R20 million. Kallner’s earnings included a base salary of R8.7 million, supplemented by R25.8 million in performance bonuses and long-term incentives, reflecting the company’s emphasis on rewarding exceptional results, as detailed in Discovery Limited’s annual financial statements.
For comparison, Gore’s package totalled R37.2 million, while group chief financial officer Deon Viljoen received R29.7 million and co-founder Barry Swartzberg earned R26.1 million. Across the Atlantic, Neville Koopowitz, chief executive of UK-based Vitality UK, commanded £4.5 million, or approximately R105 million at prevailing exchange rates. These elevated payouts for Kallner and Koopowitz stem from their substantial overachievement of targets, with both exceeding expectations by at least 110%. Kallner’s personal performance score reached an impressive 272.46%, fuelling his substantial bonus, whereas Koopowitz achieved 125.6%, yielding a £1.7 million (R40 million) incentive. In contrast, Gore, Swartzberg and Viljoen each hovered around a 102% score, resulting in more modest rewards, according to BusinessTech.
Banking Breakthrough Fuels Rewards
Kallner’s windfall arrives amid Discovery Bank’s remarkable progress towards profitability. The digital lender reported a 30% surge in client numbers, a 39% rise in advances and a 26% increase in deposits during the year. Notably, the bank achieved its first profitable half-year in the second semester, well ahead of projections, though it posted a full-year loss of R68 million—an 85% improvement over the prior period. This turnaround underscores the bank’s rapid scaling, with customer additions averaging 1,400 per day and total accounts climbing to three million, as reported by MyBroadband. Discovery Bank’s cost-to-income ratio has dipped below 100% post-profitability, signalling efficient operations as it gains scale, per Moneyweb.
The broader Discovery Group basked in robust gains, with normalised profits climbing across key divisions: Discovery Health up 7%, Discovery Life 14%, Discovery Invest 29% and Discovery Insure a staggering 229%. Consequently, Discovery South Africa, under Kallner’s stewardship, delivered 22% normalised profit growth to R12 billion. Group-wide headline earnings soared 30% to R9.6 billion, with normalised headline earnings at R9.78 billion and a return on equity of 15.4%, up from previous levels, Business Explainer previously reported. An interim dividend hike of 34% to 87 cents per share further reflects the company’s financial vigour and optimism for sustained expansion.
Investor Enthusiasm Amid Strategic Strengths
These results have captivated investors, prompting PSG Wealth equity analyst Marnus Piekaar to issue a buy recommendation on Discovery shares. The firm praises the group’s targeting of affluent clients who prioritise rewards programmes, enabling premium pricing alongside unwavering loyalty and brand potency. South Africa’s data-centric Vitality platform fosters profound customer engagement and cross-selling, while predictable cash flows span health, life, banking and fee-based services. Discovery’s integrated offerings allow seamless upselling of health, life, banking and investment products, boosting revenue sans acquisition expenses. Piekaar also flags long-term potential from expanded international Vitality alliances, novel product launches and the bank’s ongoing maturation, as outlined in BusinessTech.
Yet, Discovery navigates a competitive landscape fraught with challengers. Sanlam and TymeBank recently unveiled a joint venture to deliver unsecured personal loans bundled with credit life insurance, aiming to capture market share in retail credit by 2026. This partnership, where TymeBank will absorb half of Sanlam’s loan portfolio for about R320 million, positions it as a formidable ‘super app’ contender, according to BusinessLive. Meanwhile, Old Mutual’s OM Bank, a branchless digital outfit targeting low-income segments akin to Capitec, launched in early 2025 following regulatory nods. These entrants, backed by insurers, intensify rivalry in South Africa’s crowded digital banking arena, where 85% of consumers already hold accounts, as noted by Semafor. Discovery’s focus on high-value clients and integrated services will prove pivotal in sustaining its edge.
Balancing Rewards and Broader Equity
Discovery’s remuneration philosophy, which ties payouts to rigorous metrics encompassing financials, growth, strategy and environmental, social and governance factors, has sparked discourse on pay equity. The top five executives collectively amassed over R205 million, per Moneyweb, juxtaposed against the group’s recent elevation of its minimum monthly salary to R16,666—aligned with fair wage principles, as announced by Gore in the 2024 report and reiterated in 2025 updates via TimesLive. This move, boosting annual entry-level pay to R200,000, underscores efforts to narrow internal disparities, even as executive incentives mirror outsized contributions to profitability.
As Discovery charts its next growth phase—projecting 15% to 20% annual profit increases with restrained new-business spending—these dynamics highlight a firm in transition. Banking’s early profitability, coupled with diversified earnings, fortifies resilience against macroeconomic headwinds, yet vigilant adaptation to digital disruptors remains essential.