Nedbank Group Ltd., the South African bank controlled by Old Mutual Plc, increased Chief Executive Officer Mike Brown’s pay by 63 percent in 2010 after he was promoted to the lender’s top job and profit grew.
Brown received total compensation of 12.46 million rand ($1.8 million), including salary of 4.79 million rand and a bonus and deferred payment of 7 million rand, according to the Johannesburg-based lender’s annual report published today. Brown was paid 7.65 million rand in 2009 when he was chief financial officer.
Nedbank, the fourth-largest lender in South Africa, said on Feb. 28 full-year profit in 2010 climbed 15 percent as non-interest income increased and the lowest lending rates in 30 years helped consumers to repay debt. The bank forecast further earnings growth in 2011, adding that the “worst of the cycle” has passed with interest rates expected to remain on hold in the first half of this year.
“Financial targets, which were set taking into account the deteriorating macro environment, were largely met during 2010,” Nedbank said in its annual report. “The year-on-year change in the short-term incentive pool was broadly aligned with the change in headline earnings.”
Nedbank’s outgoing CEO, Tom Boardman’s pay in 2009 rose 79 percent to more than 43 million rand, with the inclusion of his share awards, making him South Africa’s best-paid bank CEO at the time.