Nedbank COO Mfundo Nkuhlu pockets $2.2 million in 2025 pay package

Nedbank Group Chief Operating Officer Mfundo Nkuhlu saw his total earned pay fall 4.8 percent to R35.2 million ($2.2 million) for the 2025 financial year, down from R37 million ($2.29 million) the previous year. The decline came as smaller payouts from older stock awards and a drop in dividend income offset an increase in his core base salary.

According to the lender’s latest financial disclosures, Nkuhlu’s guaranteed annual package rose 4.8 percent to R7.65 million ($470,000) during the period. His basic cash salary went up 4.5 percent to R6.3 million ($390,000), while retirement funding grew to R937,000 ($58,000) and other executive benefits reached R415,000 ($25,700).

However, performance-driven bonuses fell across the board. His total short-term incentive dropped 10.7 percent to R12.5 million ($774,000), which consisted of R7 million in immediate cash and R5.5 million ($340,000) in deferred stock. Meanwhile, long-term share awards granted during the year rose slightly to R13.5 million ($845,000).

When factoring in all newly granted awards, Nkuhlu’s total allocated pay dipped 2.6 percent to R33.65 million ($2.09 million). The actual cash and stock that vested during the year showed a sharper decline, as older long-term incentives slid 33.4 percent to R6.5 million ($402,000) and dividend payouts dropped 22.1 percent to R4.63 million ($290,000).

Nedbank scores high on sustainability targets

The executive pay reductions occurred alongside steady financial results at the Johannesburg-based banking group. Nedbank reported a 2 percent increase in headline earnings per share and a 3 percent rise in diluted headline earnings. The bank posted a return on equity of 15.4 percent but noted that its cost-to-income ratio worsened.

During the year, Nedbank completed a structural reorganization and sold its 21 percent stake in Ecobank Transnational Incorporated. Management stated that the exit from Ecobank was designed to protect the group from further valuation losses and to shield it from potential future demands for additional capital injections.

The lender increased its spending on automation, artificial intelligence, and digital transactions, identifying internal efficiency measures expected to yield more than R1 billion in savings. However, following an internal performance review, the bank halted its technology synchronization project across the Southern African Development Community region.

On personnel and corporate governance metrics, the bank ranked second among South African firms on the Forbes World’s Best Employers list. Green funding and sustainable development financing reached 21 percent of its total loan book, outperforming management’s internal target of 20 percent while preserving its top environmental and social ratings.

Inside Nkuhlu’s strategic corporate banking rise

Nkuhlu has served on the bank’s executive committee for nearly two decades, joining the organization in 2004 to manage its regional African operations. He took over corporate banking in 2005, joined the group executive team in 2008, and was promoted to managing executive of the corporate division in 2009.

He took over his current role as chief operating officer in January 2015 and joined the board of directors that same year. In this position, he controls daily business operations and handles revisions to the bank’s internal corporate structure, making him responsible for modernizing the group’s technology and productivity.

Before entering commercial banking, Nkuhlu held several senior economic roles within the South African government. He managed revenue forecasting and strategic planning at the South African Revenue Service and served as a chief director at the Department of Trade and Industry, where he shaped trade policy.