Nedbank CEO laughs all the way to the bank: Here’s how much he earned last year

It is no secret that most executives of large companies walk away with millions in salaries, while other employees earn way less.

The Companies Amendment Act, signed into law in July 2024, requires public and state-owned companies to disclose the earnings of their top and lowest employees.

In line with the Act, Nedbank revealed on Tuesday in its financial results for the year ended 31 December, 2024 how much the bank spent on executives’ and staff salaries.  

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How salaries of executives and CEO are set

Different factors determine how a CEO’s remuneration is set. These include company performance, industry standards, market conditions, the CEO’s experience and company size.

The board of directors is one of the stakeholders involved in setting the CEO’s remuneration, which often includes base salary, annual bonus, short-term and long-term incentives and benefits.

Jason Quinn, Nedbank CEO, received total awarded remuneration of R106 million, and his total staff received over R22 billion in 2024.

Quinn’s tenure started on 31 May, 2024, following Mike Brown’s resignation.

Staff remuneration breakdown

The R22 billion was for 25 613 permanent and 26 140 temporary employees.

Nedbank told The Citizen that the minimum pay for full-time permanent employees was R225 000 for most of 2024 (from April 2024). It will increase to R240 000 in 2025.

According to the report, more than R18 billion of the R22 billion went to salaries and other staff costs, an increase from the R17 billion spent in 2023.

The rest of the money was divided between short-term incentives, long-term employee benefits and share-based payments expense.

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CEO remuneration breakdown

Quinn’s total awarded remuneration was also divided among different categories.

His guaranteed salary was R6 million. He was entitled to receive this money regardless of the company’s performance.

The guaranteed remuneration includes the cash portion of package, other benefits and defined-contribution retirement fund.

The rest of the money is divided between two cash performance incentives: one to be delivered in cash and the other to be delivered in shares.

The other millions of his remuneration are total short-term incentive, award at face value, and deferred short-term incentive.

Quinn’s remuneration is higher than his predecessor’s.

Brown received a total awarded remuneration of R46 million in 2023, and R24 million for the months he was still at the bank in 2024.

Nedbank shines through

The Companies Amendment Act also requires private companies with more than 10 shareholders to make their financial statements public.

In line with the Act, Nedbank revealed they have recorded profit, driven by higher fees and lower credit impairments, reinforcing its position as one of South Africa’s leading financial institutions.

Nedbank’s headline earnings increased by 8% to R16.9 billion, while diluted headline earnings per share increased by 11%.

“Headline earnings growth was underpinned by good non-interest revenue growth, a lower impairment charge and targeted expense management, offsetting muted net interest income growth given slower loan growth and margin pressure.

“Balance sheet metrics all remained very strong, enabling the declaration of a final dividend of 1 104 cents per share, up by 8% at a payout ratio of 57%,” said Quinn.

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The bank’s 2024 highlight

He highlighted that despite a challenging economic environment, the bank achieved significant successes from a strategic perspective.

“A key highlight of 2024 was the fundamental completion of our Managed Evolution IT transformation, which has delivered a refreshed and modern technology platform.

“This platform, along with our enhanced digital capabilities, supported ongoing strong digital growth, market-leading client satisfaction metrics, solid main-banked client gains and higher levels of cross-sell.

Strategic portfolio tilt

“With our strategic portfolio tilt, we achieved market share gains in key areas such as home loans, vehicle finance, wholesale term-lending and retail deposits.

“We also continued to make strides in creating positive impacts through R183 billion of lending that supports sustainable development finance, aligned with the United Nations Sustainable Development Goals.

“The increase in renewable energy exposures of 32% to almost R40 billion, and Nedbank being awarded significant renewable energy mandates in Q4 2024, reinforce our leadership in this space.”

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