Standard Bank CEO scores R89 million payday

Standard Bank’s top executives scored massive paydays for 2024 despite a mixed performance for South Africa’s largest bank by assets under management.

The bank’s headline earnings increased by 4% to R44.5 billion for the year, while its headline earnings per share reached 2,691 cents.

However, the group’s basic earnings per share dropped by 1% to 2,644.1 cents. Its total income increased by a mere 2% to R181 billion.

Nevertheless, the group’s return on equity remained healthy at 18.5%, while its active clients grew by 4% to 20 million. Its board also increased its total dividend by 6% to 1,507 cents for 2024.

The South African franchise also saw double-digit earnings growth, supported by increased client activity and improved credit trends.

However, the Africa Regions’ earnings of R18 billion were marginally down from the prior period in rand terms, even if they grew by 22% in local currency terms.

Africa Regions contributed 41% to group headline earnings, with strong contributions from Angola, Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda and Zambia.

Consumer and business sentiment in South Africa is improving following the stable general elections and the formation of the GNU.

Electricity supply and logistics improvements have also been viewed positively, as Transnet and Eskom show signs of life.

The group’s credit impairments also fell from R16.2 billion to R15.1 billion amidst the improved interest rate environment in South Africa.

Standard Bank Executive Pay

Standard Bank Group CEO Sim Tshabalala saw his single-figure remuneration increase from R83.3 million in 2023 to R89.2 million in 2024.

Tshabalala’s increase was primarily due to a R6 million increase in his vested Performance Reward Plan (PRP), which typically sees executives receive awards, cash, or shares based on the company’s performance.

Notably, taking away the R10.8 million cash incentive, R13.2 million deferred incentive and the R54 million vested PRP, Tshabala’s fixed remuneration, i.e. his salary, only stood at R11.9 million,

The second-highest-earning executive at the group was CFO Arno Daehnke, whose single-figure remuneration slightly increased from R68.1 million to R68.4 million.

Group Deputy CEO and Standard Bank SA CEO Kenny Fihla’s remuneration decreased from R69.9 million to R67.3 million. This was due to his cash and deferred incentives and Vested PRP declining.

Despite only being promoted from Corporate and Invested Banking CEO to Group Deputy CEO in September 2024, Fihla is now serving his notice period as he is moving to Absa as its Group CEO.

Funeka Montjane, the CEO of Personal and Private Banking, was the fourth-highest earning executive. Her remuneration increased from R59.6 million to R65.5 million.

Group COO Margaret Nienaber also saw her single-figure remuneration rise from R59.797 million to R62.5 million.

Bill Blackie, the CEO of Business and Commercial Banking, followed, even if his remuneration dropped from R46.0 million to R43.7 million on the back of a lower vested PRP.

Yurush Maharaj, the CEO of Insurance and Asset Management, was next, seeing his remuneration increase from R25.1 million to R41.7 million. His vested PRP increased from R5 million to R20 million.

Luvuyo Masinda, the newly appointed CEO of Corporate and Investment Banking, had a remuneration of R12.635 million.