By Renee Bonorchis - Nov 7, 2011 7:01 AM GMT+0700
FirstRand Ltd. (FSR)’s Sizwe Nxasana was South Africa’s highest-paid bank chief executive officer after the nation’s second-largest financial-services company more than doubled its full-year profit following the sale of assets.
For fiscal year 2011, Nxasana, 54, received a total of 38 million rand ($4.8 million), which included a salary and bonus package of 15.1 million rand, a deferred bonus of 4.5 million rand and a gain from a share trust of 18.4 million rand, according to the Johannesburg-based company’s annual report, published Nov. 3. Nxasana’s share-trust payment stems from his original appointment grant, said Sam Moss, the lender’s spokeswoman, adding Nxasana was awarded another 892,066 shares in 2010, a third of which will vest next year.
Nxasana, CEO since January 2010, having joined the group in 2006, was awarded a package valued at 45 million rand last year as the company aligned his pay with that of previous CEOs. His compensation topped that of Africa’s largest bank, Standard Bank Group Ltd., which increased the pay of CEO Jacko Maree by 9.7 percent in 2010 to 6.53 million rand. Nedbank Group Ltd. (NED) raised CEO Mike Brown’s total compensation by 63 percent in 2010 to 12.46 million rand and Absa Group Ltd. (ASA) more than doubled CEO Maria Ramos’s pay and incentives to 27.5 million rand after the lender’s profit rose 19 percent. FirstRand is the first bank to report for 2011.
Asset Sales
On Sept. 13, FirstRand said it would pay a special dividend of 70 cents per share after net income rose to 20.1 billion rand in the 12 months through June, from 9.44 billion rand a year earlier. FirstRand’s first special dividend since its creation in 1998 came after the company sold its stake in insurer Outsurance Holdings Ltd. for more than 4 billion rand and spun off its Momentum Group Ltd. insurance business.
“It’s fair to say that FirstRand has performed better than the other banks, and Sizwe is very highly regarded in the industry,” Moss said.
To evaluate executive pay, the bank’s compensation committee noted in the annual report that FirstRand achieved so- called normalized earnings from continuing operations of 10.1 billion rand, an increase of 22 percent, and produced a normalized return on equity of 18.7 percent. Growth in profit after tax, risk appetite, efficiencies, customer service and the empowerment of black people were other criteria used to determine executive pay, the compensation committee wrote.
FirstRand is the fourth-best performing stock on the six- member FTSE/JSE Africa Banks Index, gaining 2.7 percent this year. Standard Bank is the worst, dropping 13 percent.
To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net
Posts
No comments:
Post a Comment