Nedbank CEO scores massive R53 million payday

Nedbank has published its integrated annual report for 2018, showing how much its executives were paid – including CEO, Mike Brown.

The bank published its financial results for the year ended December 2018 in March, showing a 14.5% lift in headline earnings, to R13.5 billion, while ROE improved from 16.4% to 17.9%.

This translated into a 3.7% increase in diluted headline earnings per share, to R27.36, and an increase in HEPS of 13.9%, to R27.93.

Brown said that progress in 2018 enabled the bank to grow its market share of main-banked clients across all business clusters.

“Our strategic enablers, including ongoing technology investments through our managed evolution programme, our people, our culture and our brand continue to create a more client-focused, agile, competitive and digital Nedbank,” he said.

“The innovations we plan to launch during 2019 are expected to result in another step change in client experiences, enabling ongoing revenue growth and efficiencies over time.”

Nedbank said it increased its retail main-banked clients by 7% to 7.9 million customers, giving it a market share up to 13.1%.

Executive pay

Nedbank paid its top six executives a combined R210.2 million in 2018, averaging R35 million per executive.

Brown was the best paid, taking home a total package of R53 million for the year.

This included a guaranteed salary of R8.5 million, a cash bonus of the same amount, a short-term incentive payout of R16 million, and a long-term incentive (LTI) of R16.5 million ‘at face value’.

Taking into account share performance and dividend payouts, the LTI value increases, giving a single figure remuneration of R53 million.

Managing executive Brian Kennedy home just under R43.5 million, followed by chief operating officer, Mfundo Nkuhlu, with R32.9 million and chief financial officer, Raisibe Morathi with R30 million.

A full breakdown of executive pay is below:

Per day comparison

Brown’s executive pay translates to just over R145,200 a day (over 365 days).

Based on Nedbank’s staff costs (R13.4 billion) and employee figures (31,277), the average employee at the bank earns R428,400 a year, or R1,170 a day.

Stats SA’s latest Quarterly Employment Survey, showed that the average employee in South Africa earned R20,190 a month, or R242,280 a a year.

The table below outlines what Nedbank’s top executives earned, and how that translates per day.

Employee Total Remuneration Average per day
M Brown R53.0 million R145 230
B Kennedy R43.5 million R119 150
M Nkuhlu R32.9 million R90 030
R Morathi R30.0 million R82 140
C Thomas R28.7 million R78 690
I Ruggiero R22.1 million R60 630
Nedbank average R428 430 R1 170
South Africa average R242 280 R650

Read: This South African insurance boss earns over R85,000 a day

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Nedbank CEO scores massive R53 million payday