Nedbank has increased its retirement age to 63 in a strategic move to keep its talented people longer as the financial services industry engages in a war for talent as local skills dry up due to retirement and emigration.
The lender, in its annual report published on Friday, said its board has resolved to increase the normal retirement age from 60 to a “competitive” 63 years from August — joining rivals Absa, which also has a retirement age of 63.
Nedbank has recently undergone a leadership transition which installed Jason Quinn as CEO — replacing Mike Brown who retired a year ago after 14 years as executive director, first as CFO and later as CEO.
At 50 years, the increase in the retirement age gives Quinn the chance to lead the bank for more than a decade.
The change also buys the group’s COO, Mfundo Nkuhlu, 58 and CFO Mike Davis more time in the lender’s top echelon.
The group’s executive committee, who together bring 184 years’ combined experience, has an average age of 48. Most of them are in their mid to late 50s.
“Nedbank’s retirement age of 60 for SA-based employees has disadvantaged the group in a highly competitive market from a talent attraction perspective,” remuneration committee chair Hubert Brody said in his letter to shareholders.
“Following a review of the peer group and general market practice, the committee has therefore supported management’s recommendation to increase the retirement age to 63 years from August 1 2025 for all SA-based permanent employees.”
Standard Bank’s retirement age of 60 is said to have disadvantaged it in its bid to retain respected banker Kenny Fihla in its ranks. Fihla, in his mid-50s, opted to join rivals Absa as CEO.
His abrupt resignation as deputy CEO of Africa’s largest bank by assets came just months after he was given increased clout at the bank with both the Standard Bank SA CEO and rest of Africa boss roles collapsed into Fihla’s office — in a move that gave him a bigger say in strategy formulation and execution.
Nedbank recently announced a leadership shake-up necessitated by the retirement of two senior executives.
Iolanda Ruggiero, managing executive for Nedbank Wealth, took early retirement after 23 years of service, while Daleen du Toit, group chief compliance officer, reached the mandatory retirement age and will retire next month after 10 years at Nedbank.
She has been in the post since 2022 and before that she was part of the Nedbank Group compliance executive team.
Nedbank’s annual report also shows the board has agreed to pay Quinn the millions of rand he forfeited on his resignation from Absa, where he was CFO.
The compensation is made up of R22.9m as on-appointment deferred short-term incentive (DSTI), replacing his unvested short-term incentive deferrals he forwent at Absa.
“Executive directors are not normally eligible for DSTIs in the normal course, and hence required specific advance motivation and approval by the group remuneration committee,” the company said.
Quinn was also awarded an on-appointment long-term incentive of R62.7m in respect of unvested long-term incentives.
“A restraint of trade agreement has also been agreed with Jason, at no additional cost to Nedbank,” the lender said.
khumalok@businesslive.co.za
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