Nedbank CEO’s Pay Rises After Lender’s Profit Beats ExpectationsRenee Bonorchis
Nedbank Group Ltd., the South African lender that beat analysts’ profit expectations for a second year, increased Chief Executive Officer Mike Brown’s pay by 7.7 percent to 35.05 million rand ($2.9 million).
Brown, 48, received a guaranteed package of 7.05 million rand, short-term incentives of 15 million rand and long-term share-based awards valued at 13 million rand, according to the Johannesburg-based lender’s annual report published Tuesday. Brown was paid 32.5 million rand in 2013 and 28.7 million rand the year before that.
Nedbank, which is controlled by Old Mutual Plc, said Feb. 23 full-year profit gained 14 percent to 9.8 billion rand and earnings per share excluding one-time items climbed 13 percent to 21.27 rand, beating the median estimate of 14 analysts surveyed by Bloomberg. Brown also oversaw Nedbank’s acquisition in 2014 of a 20 percent stake in Lome, Togo-based Ecobank Transnational Inc., Africa’s most geographically diverse lender.
“The 2014 increases to guaranteed packages were informed by an extensive role evaluation and multiple remuneration benchmarking exercises,” Nedbank, South Africa’s fourth-biggest bank, said in the report. “There is also appropriate consideration of calls for restraint in regard to remuneration.”
Nedbank was unchanged at 237.78 rand a share as of 10:34 a.m. in Johannesburg trading, valuing the lender at about 118 billion rand.