At least 44 of the bank’s lowest-paid employees could be paid with the CEO’s cash package.
The pay gap between the CEO and the lowest-paid employee at any company speaks volumes, as the remuneration for the CEO often exceeds the combined salaries of ten staff members.
This is no different at FirstRand Bank. The CEO’s cash package can pay at least 44 of the bank’s lowest-paid employees.
However, given the differences in qualifications, experience, and responsibilities between the CEO and lower staff, the difference is surely justifiable. But to what degree?
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FirstRand’s lowest-paid employees
FirstRand is the parent company to First National Bank (FNB), Rand Merchant Bank (RMB), WesBank, Ashburton Investments and Direct Axis, among others.
According to FirstRand’s remuneration report, it has increased its minimum pay by 20.9% to R260 000 per year.
“In response to market forces, Remco approved above-average adjustments to the group’s banking role minimum salaries in order to remain competitive in attracting and retaining skills at this level. The banking role minimum pay was increased by 20.9% from R215 000 per annum to R260 000 per annum,” read the report.
The Citizen asked the bank to clarify whether this increase will also apply to employees of its other banks.
FirstRand CEO payday
FirstRand has Mary Vilakazi as its CEO, making it the only prominent bank in South Africa led by a woman.
For the year ended 30 June 2025, Vilakazi’s cash package was R11.2 million, an increase from R9.4 million in the previous year. “Mary was awarded an increase of 6.67% to guaranteed pay in order to align her to industry peers.”
According to the remuneration report for the year ended 30 June 2024, Vilakazi’s cash package included an annual salary, retirement contributions, and other allowances, bringing her annual salary to R8.9 million.
The Citizen reached out to FirstRand to get a breakdown of her cash package for 2025, as it is not specified in the remuneration report for the year ended 30 June 2025.
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Bonus day for the lady at top
Apart from her cash package, her remuneration includes bonuses, some of which are based on her performance. A CEO’s remuneration usually includes a fixed yearly salary, benefits, performance-based bonuses, and shares.
Vilakazi received a performance-related Short-Term Incentive (STI) of R23 million for the period, including a restricted share award worth R18 million, amongst others. When considering all the bonuses she received, including her cash package (salary and retirement contributions), she cost the bank R78.2 million.
However, some of these bonuses she will only receive at a later stage. “In the year under review Mary received a one-off restricted share allocation totalling R18 million. This allocation will be settled into a restricted account in three annual tranches of R6 million, aligned to the graded vesting conditions (capped at 100%) of the respective year’s LTI,” read the report.
“Mary can only access the accrued dividends or sell the shares after three years, if all performance conditions are met and if a 22% ROE is achieved. However, until this ROE target is achieved the shares remain restricted.”
The bank that pays employees the most
The increase announced for employees in 2025 makes FirstRand the bank that offers the highest minimum pay.
Ordinary staff members’ salaries are set differently from the CEO’s. Ordinary staff members’ salaries are set based on their job position, qualifications, experience, market benchmarks, and the company’s size. Their remuneration does not usually include significant benefits, bonuses, or shares.
A CEO’s salary is typically set by the board of directors, which oversees the company’s strategic direction and governance. They look at the individual’s performance and set remuneration in alignment with company goals and values.
How other banks pay
Capitec pays 62% of its employees between R250 000 and R500 000 annually. While Absa’s earn R250 000. Standard Bank comes close to FirstRand at R258 390 per annum. Nedbank offers the lowest minimum pay at R240 000 per annum.
According to Capitec’s remuneration report for the year ended 28 February 2025, its former CEO Gerrie Fourie had a total cost to company of over R104 million, including bonuses.
Absa’s former CEO Charles Russon received total remuneration of R35 472 245 in the same period. Standard Bank’s CEO Sim Tshabalala walked away with more than R89 million in remuneration.
Jason Quinn, the CEO of Nedbank, received a total awarded remuneration of R106 million. All their remunerations include bonuses for the period.
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