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Nedbank Loses Sternberg to Standard Bank’s SBG, Says Pay ‘Out of Kilter’
Nedbank Capital, a unit of Nedbank Group Ltd. (NED), said Heidi Sternberg, a mining analyst at the company’s cash equities business, left the firm to join Standard Bank Group Ltd.’s securities division.
SBG is paying high salaries, Nedbank Capital Chief Executive Officer Brian Kennedy said in a telephone interview from Johannesburg yesterday. The pay scales in the equities market in South Africa may be “out of kilter” with the returns on offer because of increased competition, he said.
Standard Bank, Africa’s largest lender, last year ended its South African stock-brokerage joint venture with Credit Suisse Group AG. (CSGN) The banks have since been hiring separately to compete in Africa’s biggest economy. SBG this year hired Voyt Krzychylkiewicz and Nicole Penny from Deutsche Bank AG (DBK), Justin Froneman from Macquarie First South Securities and Risto Ketola, who ran an independent research company in Finland.
“We have made substantial hires in the past six months, hiring 19 people across the board,” Marc Ter Mors, global head of equity research at SBG, said by phone from Johannesburg today. “We’re still looking at expanding.” He declined to comment on salaries.
Nedbank Capital’s rate of staff turnover has fallen to 5 percent this year from 10 percent last year, Kennedy said. Of about 35 employees in the cash equities unit, only Sternberg and another mining analyst, Christian Siebert, have left, he said.
Nedbank Group, South Africa’s fourth-largest bank, is controlled by U.K. insurer Old Mutual Plc. (OML)
To contact the reporter on this story: Renee Bonorchis in Johannesburg at firstname.lastname@example.org