Capitec and Standard Bank have released their full-year integrated reports, filling in the final pieces that give the full picture of what CEOs in the South African banking sector earn.
The reports – for Standard Bank’s full year 2013 and Capitec’s full year 2014 – show what the banks’ top executives took home in the last financial year.
While South African banking executives continue to lift salaries and take multi-million rand bonuses, Capitec remains relatively modest in rewarding its executives.
Former Capitec CEO, Riaan Stassen, who retired from the position at the end of 2013, bucked the trend of multi-million rand bonuses in the banking sector, taking home a relatively small R9 million paycheck for his final year at the bank, including a R88,000 bonus.
Stassen’s base salary of R8.8 million, however, is still the highest basic salary out of the five South African banks covered.
Stassen was succeeded by current CEO, Gerrie Fourie, who took over the reins from 1 January 2014. Fourie’s pay totaled R2.43 million for the year.
In contrast, Standard Bank executives saw a 60% jump in total executive pay for the 2013 financial year – for both of its chief executives – which included bonuses of over R20.5 million, each.
Standard bank’s big paycheque
In its integrated report, Standard Bank’s co-CEOs Ben Kruger and Sim Tshabalala took home a combined salary of R57.5 million for the bank’s full year.
Kruger earned a basic salary of R7.96 million, with a cash bonus of R9.4 million, and a deferred bonus of R11.1 million, bringing his total pay to R28.81 million.
Tshabalala earned a basic salary of R7.65 million, with a cash bonus of R9.4 million, and a deferred bonus of R11.1 million, bringing his total pay to R28.68 million.
Kruger and Tshabalala succeeded former Standard Bank chief executive, Jacko Maree, who retired in the previous financial year.
In 2012, Maree took home a total package of R18 million, off a basic salary of R6.34 million – 34% less than the R27.2 million he pocketed the year prior.
This means that Kruger and Tshabalala each saw a 60% increase in total salary for the role of CEO at the bank.
Other bank CEO pay
In early April, both Nedbank and Absa bank released their integrated reports for the 2013 financial year, revealing a 72% pay boost for Absa’s Maria Ramos, and and 13.2% jump for Nedbank’s Mike Brown – who remains the highest paid banking CEO in SA.
Ramos’ basic salary remained unchanged in 2013 at R6.68 million; however, with the addition of R22 million in bonuses and other variable income, the executive’s total pay amounted to R28.65 million for 2013.
Brown’s total pay comprised a R6.53 million salary (up 4.6% from 2012), R13 million in performance bonuses and R13 million in share-based awards – much higher than the R28.75 million he earned in 2012.
Former FNB CEO, Michael Jordaan – who stepped down from the position at the end of 2013 – pocketed R22.1 million in 2013, up 29.2% from R17.089 million in 2012.
Banking CEO salaries, 2013 (2014, Capitec) in ZAR millions
|Standard Bank||Ben Kruger||7.962||28.806|
|Standard Bank||Sim Tshabalala||7.648||28.682|
SA banking CEO salary increase/decrease, 2011 – 2013 (ZAR millions)
|Salary 2011||Salary 2012||2011-2012 change
||Salary 2013||2012-2013 change