| Tue 2 Nov 2004, 11:04 | | Directors laugh all the way to the bank |
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Directors laugh all the way to the bank
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FIRSTRAND, the owners of SA`s second-biggest bank, put up CE Laurie Dippenaar`s pay 9,3% in its past financial year
as profit rose 26%.
Dippenaar and Paul Harris, CE of FirstRand`s banking unit, were each paid R9,17m in the year to June, compared with
R8,39m a year earlier, according to FirstRand`s annual report, published on its website yesterday. Their pay included bonuses
of R5,35m each.
Dippenaar and Harris each received 500000 preference shares worth R2,91m during the year under a performance-based
bonus plan, the company said.
They also received 500000 options each; these options can be exercised after September 2008. FirstRand`s stock gained 30% in the 12 months to June when it closed at R10,19 on the JSE Securities Exchange SA.
Net income at FirstRand rose to R5,7bn in the financial year from R4,5bn as demand for credit surged and provisions for bad loans dropped to the lowest in the company`s six- year history. Dippenaar is taking advantage of SA`s lowest interest rates in
23 years to boost lending for cars and homes and offset a decline in interest income.
Viv Bartlett, who retired as an executive director on July 1 this year, but remains as nonexecutive, received a 31% pay increase to R7,12m and was granted 375000 preference shares worth R2,18m.
RMB Holdings, the South African investment company that owns a stake in FirstRand, raised the pay of top executive Peter
Cooper by a third this financial year, after cutting his salary last year.
Cooper, who as chief operating officer is responsible for the day-to-day running of the company, was paid R5,14m for the
year to June, compared with R3,87m a year earlier, according to the annual report.
RMB holds stakes in local companies including property and casualty insurer Outsurance and risk consultancy Glenrand
MIB.
RMB`s net income increased 41% to R2,06bn in the financial year from R1,46bn a year earlier.
Cooper made another R2,18m by exercising shares awarded to him under a FirstRand performance-based bonus plan and a
further R1,13m from the sale of stock options, according to the annual report, which was posted on the company`s website.
FirstRand`s shares gained 2,88% on the JSE yesterday to close at R12,50. The stock has gained 40% this year.
