{"id":345968,"date":"2019-10-11T14:01:07","date_gmt":"2019-10-11T12:01:07","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=345968"},"modified":"2019-10-11T14:02:15","modified_gmt":"2019-10-11T12:02:15","slug":"firstrand-and-fnb-bosses-score-big-payday","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/345968\/firstrand-and-fnb-bosses-score-big-payday\/","title":{"rendered":"FirstRand and FNB bosses score big payday"},"content":{"rendered":"

Financial group FirstRand has published its annual report for 2019<\/a><\/strong>, showing how much money their top executives earned over the past year.<\/p>\n

Group chief financial officer (CEO) Alan Pullinger took home a final paycheque of R49.8 million for the year, up from the R49.4 million paid to his predecessor, Johan Burger, in 2018.<\/p>\n

Pullinger’s pay includes a basic salary of R8.87 million, up 21% from 2018, a short-term incentive (STI) bonus of R22.4 million, and a long-term incentive (LTI) payout of R18.5 million.<\/p>\n

Chief operating officer Mary Vilakazi received a total of R46.5 million, including a once-off sign-on bonus of R21.5 million, and R25 million for her work at FirstRand in 2019.<\/p>\n

Group financial director, Harry Kellan, earned R29.7 million for the year.<\/p>\n

First National Bank CEO, Jacques Celliers was paid R36.7 million for the year, comprising a basic salary of R7.7 million, and STI and LTI bonuses of R14.6 million and R14.5 million, respectively.<\/p>\n

Celliers was paid R29.3 million in the 2018 financial year.<\/p>\n

Overall, the group paid its top seven executives a total of R277 million, including R37.7 million to Aldermore Bank chief executive, P Monks, who was paid in British pounds, and R17.3 million to former chief executive, Johan Burger, who retired from FirstRand in 2018.<\/p>\n

Aldermore Bank, located in Reading, United Kingdom, is a retail bank which provides financial services to small and medium-sized businesses. It was acquired by First Rand in March 2018.<\/p>\n

Excluding the Aldermore salary and Burger’s final payout, the total for the top six executives in South Africa amounted to R221.5 million.<\/p>\n

The table below outlines what FirstRand’s top executives got paid in the latest financial year, including total rewards (including the value of LTIs awarded in the year).<\/p>\n

(Values are ZAR’000)<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n
Executive<\/th>\nRole<\/th>\nBasic Salary<\/th>\nSTI award<\/th>\nLTI award<\/th>\nTotal Award<\/th>\n<\/tr>\n
A Pullinger<\/td>\nGroup CEO<\/td>\nR8 865<\/td>\nR22 400<\/td>\nR18 500<\/td>\nR49 765<\/td>\n<\/tr>\n
M Vilakazi<\/td>\nGroup COO<\/td>\nR28 250*<\/td>\nR9 750<\/td>\nR8 500<\/td>\nR46 500<\/td>\n<\/tr>\n
H Kellan<\/td>\nGroup FD<\/td>\nR7 385<\/td>\nR10 334<\/td>\nR12 000<\/td>\nR29 719<\/td>\n<\/tr>\n
J Formby<\/td>\nCEO RMB<\/td>\nR3 861<\/td>\nR24 000<\/td>\nR8 300<\/td>\nR36 161<\/td>\n<\/tr>\n
J Celliers<\/td>\nCEO FNB<\/td>\nR7 651<\/td>\nR14 574<\/td>\nR14 500<\/td>\nR36 725<\/td>\n<\/tr>\n
C de Kock<\/td>\nCEO WesBank<\/td>\nR5 275<\/td>\nR7 500<\/td>\nR9 844<\/td>\nR22 619<\/td>\n<\/tr>\n
P Monks<\/td>\nCEO Aldermore<\/td>\n\u00a3815<\/td>\n\u00a3570<\/td>\n\u00a3633<\/td>\n\u00a32 018<\/td>\n<\/tr>\n
<\/td>\nZAR**<\/em><\/td>\nR15 238<\/em><\/td>\nR10 657<\/em><\/td>\nR11 835<\/em><\/td>\nR37 731<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n

* Includes once-off sign-on award of R21.5 million<\/em>
\n** Conversions done at 1 GBP = 18.70 ZAR<\/em><\/p>\n

Financial performance<\/strong><\/p>\n

The large executive pay comes on the back of a strong financial performance from FirstRand, which published its year end results in September 2019.<\/p>\n

FirstRand said its portfolio of businesses produced resilient growth in the period, despite local economic headwinds.<\/p>\n

Headline earnings climbed 5% higher to R27.9 billion, while basic and diluted headline earnings per share were also 5% better at 497.2 cents per share. Normalised return on equity (ROE) was at 22.8%.<\/p>\n

Group non-interest revenue (NIR) increased 6%, a resilient performance given the lack of private equity realisations compared to the prior year (realisations down 80% year-on-year).<\/p>\n

The bank reported strong fee and commission income growth of 9%, supported by higher volumes across FNB\u2019s digital and electronic channels and ongoing customer growth in the premium and commercial segments.<\/p>\n

FNB continued to be the biggest driver of revenue in the group, accounting for 63% of the normalised earnings contribution \u2013 up from 60% in 2018.<\/p>\n

Total customer growth was up only 1% year on year, with a 4% decline in consumer banking. However, this was countered by a 17% increase in premium banking clients, and an 11% jump in commercial clients.<\/p>\n

The drop in consumer banking was driven largely by conservative credit risk appetite and ongoing upward migration to premium accounts, the group said.<\/p>\n

\n

Read: Meet the South African bosses who earn around R140,000 a day<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Financial group FirstRand has published its annual report for 2019, showing how much money their top executives earned over the past year.<\/p>\n","protected":false},"author":10,"featured_media":245021,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[4088,76,26],"class_list":["post-345968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-firstrand","tag-fnb","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/345968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=345968"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/345968\/revisions"}],"predecessor-version":[{"id":345996,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/345968\/revisions\/345996"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/245021"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=345968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=345968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=345968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}