Standard Bank CEO Sim Tshabalala pocketed R48.5 million in the 2017 financial year, according to the bank’s latest integrated report.
The payout includes a guaranteed salary of R9.1 million, and an annual bonus of R11.4 million. Tshabalala was paid a further R14 million in an annual deferred award, as well as an additional R14 million as part of the group’s performance reward programme (PRP).
According to the bank, “Tshabalala showed quiet but very influential leadership”, helping the group deliver a set of results “which were not only financially pleasing but which encompassed significant improvements in client centricity, employee engagement and SEE impact the group has in the communities in which it does business”.
Tshabalala’s total pay is a 9% increase from his 2016 salary of R44.6 million, and is in-line with the group’s headline earnings growth of 14%, the bank said. Of the total rewards. R28 million is deferred for up to 3.5 years, it said.
For the year ended December 2017, Standard Bank Group pointed to a strong financial performance, delivering 14% growth in headline earnings to R26.3 billion, while return on equity (ROE) improved to 17.1% from 15.3% in 2016.
Headline earnings per share improved to R16.40, from R14.40 before, while a final dividend of 510 cents per share was declared, resulting in a total dividend of 910 cents per share, an increase of 17% on the prior year.
Banking revenue growth remained subdued, credit impairment charges were broadly flat and costs were well managed to deliver positive jaws of 1.0%. Banking activity headline earnings grew 10% to R24.3 billion and ROE improved to 18.0% from 16.8% in 2016.
In total, Standard Bank spent over R246 million remunerating its top executives.
Executive director, Ben Kruger, who stepped down as the joint-CEO of Standard Bank in September 2017, walked away with a large paycheque. Kruger took home R46.5 million, made up of a R9.08 million salary, and R11.1 million, R13.8 million and R12.5 million in awards.
Arno Daehnke (group financial director) earned R32.5 million, while CEO of corporate and investment banking, Kenny Fihla earned R34 million. Peter Schlebusch (head of personal and business banking) took home R43.95 million, and new CEO of Liberty (former head of CIB at Standard Bank) David Munro pocketed R40.9 million from the bank.
Standard Bank Group currently employees 48,322 permanent employees across all its operations, and carries staff costs of R31.7 billion. This is equates to roughly R656,000 per employee.
Using this metric, Tshabalala’s salary is 74 times more than the average employee’s, while the average executive (R41 million) earns 63 times more than the average employee.
Other banking CEOs
Thanks to a sizeable reward earned in 2017, Capitec CEO Gerrie Nel came out as the top earner among retail banking CEOs with a total package of R56.6 million, while Nedbank CEO Mike Brown took home a R38 million for the full year, and Absa CEO Maria Ramos received a R37 million salary.