Standard Bank’s co-CEOs, Ben Kruger and Sim Tshabalala, scored a combined R90 million pay package for 2016, accounting for almost half of the R200 million-plus paid to the bank’s executives for the year.
Kruger and Tshabalala received a total cash package of R19.2 million for the 2016 financial year, with the rest (R25.3 million) made up of deferred awards. The salaries represented a massive 44% increase on the R30.9 million paid to each CEO in 2015.
Standard Bank said that the major jump in pay was attributed to the co-CEOs maintaining a five-year compound annual growth rate of 24% at the bank, while leading the group’s strategies.
They were also attributed with leading successful efforts to prevent South Africa’s sovereign rating downgrade to junk status in 2016 – though much of that work has since been undone following recent political moves.
“The chief executives oversaw the allocation of the group’s capital, liquidity, skills and other scarce resources. The group’s robust financial results reflect good revenue growth and cost discipline, efficient capital and risk appetite allocation across multiple jurisdictions and sectors despite difficult trading conditions,” Standard Bank said.
The group also highlighted its strong financial performance for the year:
- Headline earnings from banking operations were up by 9% to R22.062 billion, and banking operations ROE increased to 16.8% from 16.3%.
- Group headline earnings of R23 billion were up 4%.
- Group ROE decreased to the lower end of the target range at 15.3%.
- Dividends per share were up by 16%.
The co-CEO’s salaries accounted for 43% of total remuneration paid to Standard Bank executives in 2016.
Standard Bank paid R209.3 million to executives, including R37.5 million in fixed salaries, R119.8 million in bonuses and shares, and a further R52 million in long-term performance-related payments.
This is up from R190.2 million paid in 2015, and R155 million paid in 2014.
Chief executive of corporate and investment banking at Standard Bank, David Munroe, was the highest paid executive, who received a total pay package of R45.3 million, including a R12.9 million cash bonus.