Absa CEO Maria Ramos was paid a total package of R37.6 million for the 2017 financial year, almost matching what Nedbank CEO Mike Brown earned.
Brown is typically known as the highest-paid CEO in the retail banking space, which covers the country’s ‘big five’ banks, including Capitec. He earned R38.1 million last year.
Ramos’ total pay package was made up of a basic salary of R8.23 million, benefits of over R328,000, bonuses of R12.5 million and deferred income from previous years totalling R16.6 million.
Absa paid its top five executives a combined total of R123 million for the year.
David Hodnett, deputy CEO for SA earned R33.2 million, and Peter Matlare, deputy CEO for the rest of Africa, earned R20 million. Financial director Jason Quinn scored R16.2 million and Nomkhita Nqweni, chief executive of wealth, investment management and insurance, earned R16.4 million.
According to Absa’s annual report, the concerns around high levels of executive pay has been heard, and the bank will be making changes to its remuneration policy as soon as the group’s separation from Barclays has been completed.
It said that ‘role-based pay’ was put in place to ensure market competitiveness, but will be terminated once the Barclays decoupling is completed. After which, the group will align pay with the market, it said.
Last month the bank reported a solid set of full year results, despite the troubled economy of 2017.
It reported a 4% rise in profit for the year ended December 2017. Income grew to R73.3 billion, from R72.4 billion in 2016.
Normalised diluted Headline earnings per share (HEPS) grew 4% to 1 837.7 cents, while diluted IFRS HEPS including R1.9 billion of separation costs decreased 4% to 1 716.5 cents.
The group declared a 4% higher full year dividend per share (DPS) of 1070 cents.
Effective 30 May 2018, the group will drop the ‘Barclays Africa’ name, and will continue its operations as Absa, which has been its trading name in South Africa since before the Barclays takeover.