Nedbank CEO’s pay down 2%

Moneyweb

Nedbank Group CEO Mike Brown’s total remuneration fell 2.3% to R38.12 million in 2017, as short-term incentives awarded to executive management were adjusted in line with the group’s performance.

Mike Brown’s pay:

The banking group’s shortterm incentive pool dipped 0.3% to R2.38 billion in 2017, as overall headline earnings grew 2.8% in 2017 (2016: 5.9%). Group headline earnings were hit by the underperformance of Nedbank’s pan-African unit Ecobank Transnational Incorporated (ETI), with headline earnings from managed operations increasing 7.8%.

Profit and earnings vs short-term incentives:

Nedbank’s 2017 short-term incentive spend comprises 12.7% of headline earnings from managed operations – pre-bonus and pretax – versus 13.1% in 2016.

“The group’s lower headline earnings growth and underperformance from ETI have resulted in a further decline in the group exco sharing of the total shortterm incentive pool from 4.2% to 4%, with the short-term incentive awarded to the CEO down 5.2%, compared with 2016,” says its 2017 integrated report.

The pay packages of Brown’s fellow executive directors Raisibe Morathi and Mfundo Nkuhlu also dipped in 2017. Morathi’s total remuneration fell 0.6% to R21.76 million; Nkuhlu’s fell 0.8% to R25.74 million.

The group’s short-term incentive scheme rewards a “combination of profitable returns, appropriate risk taking and growth”, with 2017’s awards based on performance against pre-agreed targets and individual scorecards.

Differences in annual pay among divisional heads varied. Managing executive for Retail and Business Banking Ciko Thomas’ pay increased 14.9% to R17.99 million. Brian Kennedy, managing executive for Corporate and Investment Banking, received R36.25 million, up 4.4% from the prior year. Iolanda Ruggiero, managing executive for Nedbank Wealth, saw her pay decrease 3.2% to R12.85 million.

Total pay to the group’s 18 non-executive directors increased to just over R20 million from R17.32 million. R12.25 million comprised Nedbank and Nedbank Group board fees with the remaining R7.77 million making up committee fees.

Nedbank said it paid R12.8 billion in remuneration and benefits – net of taxes – to its 31 887 employees.