South African banking CEO kisses R60 million goodbye

Nedbank chief executive Jason Quinn lost R60 million in long-term incentive awards when he left Absa to join his current employer.

Quinn started his career at Ernst & Young in 1992, where he held the role of partner from 2005 to 2008. However, banking was his calling.

He is a banking veteran who spent most of his career at Absa. He joined the company in July 2008 as group financial controller.

He was promoted to chief financial officer (CFO) of Absa’s retail and business banking division before becoming head of finance in May 2014.

In September 2016, Quinn became Absa’s group financial director, a position he held until he departed from the banking group.

Quinn also served as Absa’s interim group chief executive officer from April 2021 to March 2022 during a transition period.

In November 2023, Absa announced that Quinn had resigned as group financial director of Absa Group and Absa Bank.

The Absa board thanked Quinn for his “significant contribution to Absa since 2008 and wish him well in his future endeavours”.

On the same day, Nedbank announced that Quinn would replace Mike Brown as chief executive at the close of the Nedbank Group AGM on 31 May 2024.

Nedbank’s group chairperson, Daniel Mminele, said they were delighted to have secured the services of an experienced leader of Quinn’s calibre.

Quinn’s appointment as chief executive was striking because Mminele, like Quinn, was also a previous Absa CEO.

Mminele served as Absa’s chief executive officer from 15 January 2020 until 20 April 2021. He left the bank following clashes with the board.

Despite his acrimonious departure, Mminele and the board agreed on a termination payment that included his unvested short-term and long-term incentives.

Absa paid Mminele over R30 million in compensation as part of his termination agreement. It included nearly R500,000 in legal fees.

Quinn did not enjoy the same privilege when he left Absa. The bank’s latest annual report showed that he forfeited R60 million in incentives.

Absa said Jason Quinn ceased to be group financial director and executive director on 22 November 2023.

“His fixed remuneration was pro-rated for the time served as an executive director during 2023,” Absa said.

The bank added that it did not grant Quinn any short-term or long-term incentive awards in respect of this period.

Absa explained that in March 2022, as part of the transitional arrangements to the new group CEO, it entered into a retention agreement with Quinn.

It explained that this agreement aligned with Absa’s commercial imperative to ensure continuity and stability at the senior executive level.

However, Quinn forfeited 50% of all outstanding deferred short-term incentive awards and 100% of all long-term incentive awards on the date of notice of his resignation.

Absa explained that he forfeited these incentives in terms of this retention arrangement and subsequent exit terms.

The value of the awards subject to forfeiture, using the 31 December 2023 share price, was R60.1 million. Quinn retained deferred short-term incentive awards worth R6.6 million.

“The awards subject to eligible leaver status will remain in the Share Incentive Plan and vest on their normal vesting date,” Absa said.