Banking

R30 million payday for Reserve Bank bosses

Luke Fraser

 ·14 Aug 2024

The South African Reserve Bank (SARB) fulfils an important function in ensuring price stability and economic growth, and its senior managers are paid millions to ensure this.

The SARB opened its doors in 1921, making it the oldest central bank in Africa.

After the constitution was adopted in 1996, the SARB’s independence was enshrined.

Through its interest rate decisions, the central bank must ensure that it balances inflation and economic growth.

Amid skyrocketing inflation in 2022 and 2023, the repo rate currently stands at a 15-year high of 8.25%. Economists and analysts expect the SARB’s Monetary Policy Committee (MPC) to cut rates when it meets in September as inflation improves.

Unlike other South African banks, the SARB is not profit-driven. After it allows for certain provisions, such as payments of company tax on profits, transfers to reserves, and dividend payments, the surplus of the SARB’s earnings is paid to the South African government.

The SARB also houses the Prudential Authority, which regulates banks, insurers, cooperative financial institutions, financial conglomerates and other specific market infrastructures.

Governor Lesetja Kganyago has led the central bank since 2014. President Cyril Ramaphosa recently extended his term to 2029.

As the “boss” of the SARB, Kganyago received R9.7 million, including benefits, in the financial year ending 31 March 2024 (FY2024). This was a 10% increase from his pay in FY2023.

Under Kganyago are three Deputy Governors – Fundi Tshazibana (who also serves as the CEO of the Prudential Authority), Rashid Cassim and the departed Kuben Naidoo.

The total pay packages of all three deputy governors increased from R6.2 million in FY23 to R6.6 million in FY24.

Naidoo resigned in December 2023 and was replaced by Mampho Modise, who started her five-year term on 1 April 2024.

In total, the pay of the four executives increased from R27.5 million in FY23 to R29.7 million in FY24.

Pale in comparison to other senior figures

Although the SARB’s pay packages for its senior executives are far higher than the average salary in South Africa, they pale in comparison to the highest-paid banking CEOs.

Investec CEO Fani Titi earned £5.24 million (R120 million) in the group’s most recent financial year.

Former Nedbank CEO Mike Brown earned R92.5 million in his final year, while Standard Bank CEO Sim Tshabalala received R83.30 million.

For context, the combined salaries of the SARB Governor and Deputy Governors totalled R29.7 million. This doesn’t even reach former FNB CEO Jacques Cellier’s pay package of R31.9 million—the lowest of all major banking CEOs:

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