Banking

FirstRand’s goodbye to FNB’s Jordaan

Staff Writer

 ·28 Oct 2013

FirstRand’s  top executives netted a combined remuneration package exceeding R105 million in annual pay for the financial year 2013.

Outgoing FNB CEO, Michael Jordaan received a sum of R22.1 million, which included a performance related amount of R16.2 million. His pay was up more than R5 million from 2012.

FirstRand CEO, Sizwe Nxasana scored R26 million, almost R10 million more than in 2010, while Johan Burger, financial director and chief operating officer at FirstRand was paid R23.6 million.

Alan Pullinger, CEO at Rand Merchant Bank (RMB) was paid R23.56 million, while Brian Riley, CEO of  WesBank pocketed R12.4 million.

FirstRand executive pay 2010 – 2013 (in ZAR millions)

Laurie Dippenaar, FirstRand chairman said: “Michael’s tenure at FNB has been incredibly successful. Much of which can be attributed to his passion for innovation which, backed up by his knowledge of the intersection of banking, technology and social media, has delivered strong growth and excellent returns for the group and its shareholders.”

In May 2013, Jordaan hinted that he hoped to become a part of the Cape start-up “vibe” and last month (September), he was appointed as the chairman on South African mobile social platform, Mxit’s board.

FNB reported a net increase of 1.1 million active accounts in the year under review, taking its total client base past 7.5 million.

“I would like to thank Michael Jordaan for the ten years he has spent at FNB, building the business into one of the most powerful financial services franchises in South Africa.”

“We fully understand Michael’s desire to spend more time with his young  family, and recognise that his five years of commuting weekly  from Cape Town has been a significant sacrifice. We wish him luck in his new ventures, which no doubt will be successful and highly innovative in nature,” Dippenaar said.

Financial performance

In September FirstRand reported its financial results for the year ended June 2013, noting 20% growth in normalised earnings to R15.3 billion, up from R12.7 billion in 2012.

FirstRand’s main retail and commercial division, FNB, contributed the largest portion to the group’s earnings, reporting a 22% rise in normalised earnings to R8.16 billion, up from R6.67 billion in 2012.

FirstRand’s other divisions – Rand Merchant Bank and WesBank – reported a 21% and 10% jump in earnings, respectively.

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