Rhys Summerton, chief executive of South African IT services firm iOCO, guided the company from a net loss of R54 million in 2024 to a net profit of R357 million in 2026 while receiving a zero-rand salary, MyBroadBand reported.
The turnaround at iOCO marks a stark operational shift for the Johannesburg Stock Exchange-listed firm following years of financial strain tied to a historic corruption scandal under its former identity as EOH Holdings. While the business reclaimed profitability, Summerton opted for zero cash remuneration, relying instead on a conditional share plan tied strictly to long-term stock performance.
The Financial Mechanics Driving the Turnaround
- Profitability Rebound: iOCO swung from a net loss of R54 million in 2024 to a net profit of R257.5 million in 2025, reaching R357.1 million in profit by 2026.
- Zero Cash Salary: Chief executive Rhys Summerton has drawn a total compensation of Rnil in cash, bonuses, or benefits since his appointment.
- Share Buyback Strategy: Management refused dividend declarations, prioritizing share buybacks to elevate earnings per share and consolidate remaining equity.
The company’s recovery follows a multi-year restructuring program initiated after forensic investigations revealed that EOH executives bribed public officials to secure government contracts between 2015 and 2016. Creditors pressured leadership as debt outpaced incoming cash flow, prompting former CEO Stephen van Coller to sell core performing assets and slash operational size. By March 2024, revenue contracted to R6 billion from historical highs of R16.3 billion.
Summerton joined the board as an independent non-executive director in May 2024 and chaired the Audit and Risk Committee before stepping into the executive role in February 2025 alongside Dennis Venter. Following Venter’s departure a year later, Summerton assumed sole chief executive responsibilities.
| Financial Metric | 2024 | 2025 | 2026 |
|---|---|---|---|
| Net Profit / (Loss) | (R54 million) | R257.5 million | R357.1 million |
| CEO Cash Compensation | R0 | R0 | R0 |
| Executive Share Incentive | — | — | — |
Rather than drawing monthly pay, Summerton accepted a 2022 share plan granting 1,284,797 conditional shares at a weighted average grant price of R5 per share. Payouts from this structure remain contingent on achieving pre-set stock price targets.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
