FirstRand Boosts CEO Nxasana’s Pay 15% After Profit Rises

FirstRand Ltd., South Africa’s second-biggest financial-services company, increased Chief Executive Officer Sizwe Nxasana’s compensation by 15 percent after the lender boosted profit by a third.

Nxasana was paid a total of 22.5 million rand ($2.6 million) for the year ended June, including a salary of 7.5 million rand and performance-related compensation of 15 million rand, according to the Johannesburg-based firm’s annual report published on its website today. The CEO received 19.6 million rand last year, comprised of 6.9 million rand in salary and a 12.7 million-rand bonus.

“Of the 15 million rand million variable pay, 11.5 million rand is deferred, in a mix of cash and shares, and at risk,” Sam Moss, a spokeswoman for FirstRand, said in an e-mailed response to questions today. Last year 9.5 million rand of the bonus was deferred, she said.

FirstRand said on Sept. 11 that full-year profit rose 34 percent as consumer lending was boosted by unsecured credit and low interest rates. Patrice Rassou, a FirstRand investor who helps oversee about $63.5 billion as head of equities at Sanlam Investment Management in Cape Town, called the company’s results the best of South Africa’s four largest banks.

Standard Bank Group Ltd. boosted profit by 9 percent in the six months to June, while Barclays Plc’s Absa Group Ltd. reported a decline in earnings.

Nxasana, 54, who has been CEO of the group since January 2010, was also awarded more than 800,000 shares from a variety of company stock plans, according to the annual report. Of this amount, he received 576,567 shares in 2012 and the balance reflects shares received as part of deferred components from previous years, Moss said.

FirstRand is the best-performing stock on the six-member FTSE/JSE Africa Banks Index this year, having gained 42 percent.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE