{"id":679655,"date":"2023-04-14T13:55:08","date_gmt":"2023-04-14T11:55:08","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=679655"},"modified":"2023-04-14T13:55:08","modified_gmt":"2023-04-14T11:55:08","slug":"nedbank-paid-its-top-execs-over-r200-million-heres-how-much-they-each-banked","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/679655\/nedbank-paid-its-top-execs-over-r200-million-heres-how-much-they-each-banked\/","title":{"rendered":"Nedbank paid its top execs over R200 million – here’s how much they each banked"},"content":{"rendered":"

Nedbank published its annual report for 2022 in the second half of March 2023, showing how much its executives were paid \u2013 including CEO Mike Brown.<\/p>\n

The bank’s financial results for the year ended December 2022 showed strong growth in headline earnings, which increased by 20% for the year to R14 billion.<\/p>\n

Growth in earnings was driven by strong double-digit revenue growth, a slightly higher credit loss ratio and a well-managed expense base, it said.<\/p>\n

Return on equity (ROE) increased to 14%, above the prior period of 12.5%, assisted by the group\u2019s improved return on assets which increased from 0.98% to 1.14%.<\/p>\n

On the back of strong earnings, growth and capital and liquidity positions, the group declared a final dividend of 866 cents per share, up by 14% (December 2021: 758 cents per share), bringing the total dividend for 2022 to 1 649 cents per share, up 38%, both at record levels for the group.<\/p>\n

Brown said that the excellent progress in 2022 was enabled by strategic value drivers of growth, productivity, and risk and capital management.<\/p>\n

Given Nedbank’s strong 2022 performance, it has set revised medium-term (2025) and long-term targets, he added.<\/p>\n

“In 2025, we aim to achieve an ROE of 17% (around COE plus 2%) and a cost-to-income ratio of 52%.<\/p>\n

“Over the longer term, we aim to improve these to above 18% (around COE plus 3%) and below 50%, respectively. Achieving these targets should be value-creating for shareholders,” said Brown.<\/p>\n

He also thanked Nedbank’s dedicated employees for their commitment and hard work in difficult conditions and extended his thanks to its more than 7 million retail and wholesale clients, investment community, and other stakeholders for choosing to bank with Nedbank every single day.<\/p>\n

Executive pay<\/strong><\/p>\n

Nedbank paid its top seven executives a combined R203 million in 2022, averaging R29 million per executive.<\/p>\n

Brown was the best paid, taking home a total package of R43.6 million for the year.<\/strong><\/p>\n

This included a guaranteed salary of R9.6 million, a cash bonus of R17 million (of which R9 million was delivered in shares), and a short-term incentive payout of R17 million \u2013\u00a0giving a single-figure remuneration of R43.6 million.<\/p>\n

Managing executive An\u00e9l Bosman took home just under R31.6 million, followed by chief operating officer, Mfundo Nkuhlu, with R30 million and chief financial officer, Mike Davis with R28.1 million.<\/p>\n

A full breakdown of executive pay is below:<\/p>\n

\"\"<\/a><\/p>\n

Per day comparison\u00a0<\/strong><\/p>\n

Brown\u2019s executive pay translates to around R119,452 a day (over 365 days).<\/p>\n

However, it must be noted that Brown’s salary is below his remuneration received in pre-Covid 2019, where he earned R53 million. This works out to a 21.5% cut in his salary.<\/p>\n

Based on Nedbank\u2019s staff costs (R19.9 billion) and employee figures (25,924), the average employee at the bank earns R769,171 a year, or R2,107 a day.<\/p>\n

The table below outlines what Nedbank\u2019s top executives earned and how that translates per day.<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n
Employee<\/strong><\/td>\nTotal Remuneration<\/strong><\/td>\nAverage per day<\/strong><\/td>\n<\/tr>\n
M Brown<\/td>\nR43.6 million<\/td>\nR119,452<\/td>\n<\/tr>\n
A Bosman<\/td>\nR31.5 million<\/td>\nR86 438<\/td>\n<\/tr>\n
M Nkuhlu<\/td>\nR30.08 million<\/td>\nR82 410<\/td>\n<\/tr>\n
M Davis<\/td>\nR28.1 million<\/td>\nR76 986<\/td>\n<\/tr>\n
C Thomas<\/td>\nR28.4 million<\/td>\nR77 808<\/td>\n<\/tr>\n
I Ruggiero<\/td>\nR20.7 million<\/td>\nR56 712<\/td>\n<\/tr>\n
T Sibiya<\/td>\nR20.6 million<\/td>\nR56 438<\/td>\n<\/tr>\n
Nedbank average<\/em><\/td>\nR769 171<\/em><\/td>\nR2 107<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n

Read: These job sectors pay the highest average salaries in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

This is how much Nedbank’s top executives earned in 2022, including CEO Mike Brown. <\/p>\n","protected":false},"author":10,"featured_media":679711,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[26,1799],"class_list":["post-679655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-headline","tag-nedbank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/679655","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=679655"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/679655\/revisions"}],"predecessor-version":[{"id":680337,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/679655\/revisions\/680337"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/679711"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=679655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=679655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=679655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}