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The new chief executive of Nedbank, Jason Quinn (appointed from June 2024), was awarded R62,7 million in shares under the group’s long-term incentive scheme in August and a further R9,15 million in a deferred short-term incentive in his first month at the group.
Nedbank says these awards were made “in respect of the value of awards that he forfeited on resignation from his previous employer”.
Quinn resigned as financial director of Absa Group on November 22, 2023 “with immediate effect”.
He was required to serve a notice period and what was presumed to be gardening leave (effectively six months).
Quinn was interim CEO of Absa between April 2021 and March 2022.
His former employer notes that as part of a “retention arrangement” agreed when former Absa CEO Arrie Rautenbach was appointed and Quinn returned to his previous position as FD, as well as “subsequent exit terms, he forfeited 50 percent of all outstanding deferred short-term incentive awards and 100 percent of all long-term incentive awards on the date of notice of his resignation”.
Absa says the “value of the awards subject to forfeiture, using the December 31, 2023, share price and before application of the adjustment for performance conditions on the 2021 long-term incentive, was R60,1m”, that he “retained deferred short-term incentive awards worth R6.6m”, and that those awards that are subject to “eligible leaver status will remain in the share incentive plan and will vest on their normal vesting date”.
Given the appreciation of Nedbank’s share price between August 2024 and March 2025, the R62,7 million in long-term incentives Quinn was awarded is now worth R80,7 million. The group notes that “the corporate performance targets in respect of this award were identical to those for the 2024 awards for Group Executive Committee members”.
Quinn will get an annual long-term incentive award of R18 million this month for the current financial year. – Moneyweb
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