R127.7m payment to FirstRand executives – report

Former FirstRand chief executive officer and now chairperson of National Student Finance Assistance Scheme (Nsfas) Sizwe Nxasana took home R32.1 million after his long-term incentives shares and performance shares awarded in 2014 and 2015 matured in September 2016.

He retired in 2015, and his successor, Johan Burger, received R29.1 million, while deputy CEO Alan Pullinger earned R20.9 million. Group chief financial officer Harry Kellan got R9.7 million. This is disclosed in the banking group’s annual report released on Tuesday.

The Business Day reports that, in comparison, FNB CEO Jacques Cilliers raked in R13.4 million, Wesbank boss Chris de Kock got R11.4 million, Rand Merchant Bank’s James Formby took home R11 million.

The group’s investor relations head Sam Moss revealed to the publication the shares accrued at average market values at the time of vesting.

The publication reportedly calculated this figure using closing market prices on the date of each vesting disclosed in the annual report and found them to have surpassed their R86-million value.

The bank’s chairperson, Laurie Dippenaar, expressed her comfort with the staggering figures, saying the group’s remuneration policy three “health checks” were adequate to arrest excessive executive payment packages.

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