FNB CEO and FirstRand execs score massive R200 million payday

FirstRand released its annual remuneration report for 2023 – revealing how much the group’s top execs earned over the last financial year, which includes the CEOs of FirstRand, FNB, and RMB.

For the year ending June 2023, FirstRand reported a 12% growth in headline earnings to R36.7 billion, with net asset value up 10% to R180.7 billion.

The group declared an annual ordinary dividend of 384 cents per share, an increase of 12% year-on-year.

“The 12% increase in the group’s normalised earnings was driven by good topline growth, reflecting continued momentum in new business origination in all large lending portfolios, ongoing growth from the deposit franchise and the performance of the group’s transactional franchise,” it said.

It noted that it had a year of balancing acts, given that the current operating environment in South Africa has been characterised by high inflation and interest rates, combined with sluggish system growth and competitive behaviour.

The group also noted key leadership changes at the group, with both group CEO Alan Pullinger and FNB CEO Jacques Celliers moving on from their roles.

Pullinger will step down as group chief executive officer (CEO) and will be succeeded by Mary Vilakazi, currently group chief operating officer (COO).

Celliers will be stepping down and taking up a new role taking executive responsibility for the group’s fintech strategy. He will be succeeded by FirstRand group chief financial officer (CFO) Harry Kellan.

The changes will take effect from 1 April 2024.

Executive pay

According to FirstRand’s single-figure report, FNB CEO Jacques Celliers’ pay amounted to R31.92 million in 2023.

Celliers’ remuneration comprised a guaranteed pay of R8.7 million, short-term annual incentives (STIs) of R18.2 million, and long-term share options settled under the Covid-19 scheme during the financial year that amounted to R5 million.

Celliers’ salary equates to him earning around R87,458 a day. The group noted that his guaranteed pay increased by 5%, in line with that of other executives and marginally below that of managerial staff.

FirstRand Group CEO Alan Pullinger was the second paid on the team taking home a single-figure total pay package of R31.55 million for the year.

Pullinger’s remuneration comprised a guaranteed pay of R10.17 million, short-term annual incentives (STIs) of R14.95 million, and long-term share options settled under the Covid-19 scheme during the financial year that amounted to R6.42 million.

Of FirstRand’s top executives, Mary Vilakazi took home the ‘smallest’ amount among the executives at R25.81 million.

The only other executive to command a higher salary than Pullinger and Celliers was Aldermore CEO Steven Cooper, only because he was paid in pounds – which totalled £2.248 million.

It must be noted that James Formby was no longer a prescribed officer effective 1 October 2022; therefore, his guaranteed package disclosed is for three months only. Emrie Brown succeeded Formby as RMB CEO, effective 1 October 2022, and her guaranteed package is for the entire year.

Combined, the seven executives received a total of R200.5 million in salaries. The table below shows what each executive earned and how that translates per day.

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