{"id":679909,"date":"2023-04-14T08:14:13","date_gmt":"2023-04-14T06:14:13","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=679909"},"modified":"2023-04-14T08:14:13","modified_gmt":"2023-04-14T06:14:13","slug":"absas-top-executives-massive-payday-earning-a-collective-r207-million","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/wealth\/679909\/absas-top-executives-massive-payday-earning-a-collective-r207-million\/","title":{"rendered":"Absa’s top executives’ massive payday – earning a collective R207 million"},"content":{"rendered":"

Absa’s annual remuneration report for 2022 was released in March 2023 \u2013 revealing how much the bank’s top execs earned over the last financial year.<\/p>\n

In its financial results for the full year ending December 2022, Absa showed strong growth despite the challenging environment within South Africa.<\/p>\n

The group reported revenue up 15% to R98.9 billion, with net interest income rising 13% to R60.5 billion and non-interest income increasing 18% to R38.42 billion.<\/p>\n

Group headline earnings increased by 14% to R20.26 billion from R17.83 billion the year prior. Headline earnings per share were recorded at 2,443 cents.<\/p>\n

The group declared a full-year dividend of 300 cents per ordinary share, up 65.6% from 785 cents the year before.<\/p>\n

Return on equity (RoE) improved to 15.6% from 14.6%, and net asset value (NAV) per share grew by 4% to 16,255 cents.<\/p>\n

South African headline earnings grew 17% to R17.61 billion, as pre-provision profit grew 24% to R36.5 billion. Total revenue increased 13% to R74.3 billion, with non-interest income down 9% and net interest income rising 11%.<\/p>\n

South Africa contributed 87% of group earnings.<\/p>\n

Executive pay<\/strong><\/p>\n

According to Absa’s single-figure report, CEO Arrie Rautenbach\u2019s pay amounted to R46.05 million in 2022 \u2013 an 82.7% increase from the R25.22 million he received in 2021.<\/p>\n

This comprises his fixed salary of R9.28 million and a cash incentive of R9.75 million. The group CEO also got a deferred award of R8.75 million as well as a performance award vested of R18.28 million.<\/p>\n

Rautenbach\u2019s salary equates to him earning around R126,164 a day.<\/p>\n

The group’s CFO, Jason Quinn, took home R40.17 million for the year \u2013 a 52% increase from the R26.35 million he received in 2021.<\/p>\n

\"\"<\/a><\/p>\n

Of Absa\u2019s top eight executives, Punki Modise took home the \u2018smallest\u2019 amount among the executives at R12.6 million.<\/p>\n

She was appointed as Interim Financial Director and executive director on 23 April 2021 until 28 March 2022. She was subsequently appointed as Interim Chief Executive: Retail and Business Banking and prescribed officer from 29 March 2022 until 30 June 2022.<\/p>\n

\"\"<\/a><\/p>\n

Combined, the eight executives received a total of R207 million in salaries<\/strong> \u2013 averaging R25.8 million per exec.<\/p>\n

Based on Absa\u2019s reported numbers, the group spent R27.87 billion on staff costs in 2022 for its 35,451 employees (including salaries and benefits). This translates to around R786,000 per employee.<\/p>\n

The average executive earned 33 times more than the average employee, with the CEO earning 58 times more.<\/p>\n

The table below outlines what Standard Bank\u2019s top executives earned and how that translates per day.<\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n\n
Employee<\/strong><\/td>\nTotal Remuneration<\/strong><\/td>\nAverage per day<\/strong><\/td>\n<\/tr>\n
A Rautenbach<\/td>\nR46.05 million<\/td>\nR126 164<\/td>\n<\/tr>\n
J Quinn<\/td>\nR40.17 million<\/td>\nR110 054<\/td>\n<\/tr>\n
C Russon<\/td>\nR34.22 million<\/td>\nR93 753<\/td>\n<\/tr>\n
C Fox<\/td>\nR15.75 million<\/td>\nR43 150<\/td>\n<\/tr>\n
G Lee<\/td>\nR14.93 million<\/td>\nR40 904<\/td>\n<\/tr>\n
F Mkhize<\/td>\nR14.88 million<\/td>\nR40 767<\/td>\n<\/tr>\n
S Chibiya<\/td>\nR13.41 million<\/td>\nR36 739<\/td>\n<\/tr>\n
P Modise<\/td>\nR12.66 million<\/td>\nR34 684<\/td>\n<\/tr>\n
Absa average<\/em><\/td>\nR786 000<\/em><\/td>\nR2 153<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
\n

Read: 4 tax updates to watch out for in South Africa \u2013 including solar and medical aid<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

This is how much money Absa’s executives made last year. <\/p>\n","protected":false},"author":10,"featured_media":679983,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9880],"tags":[29,26],"class_list":["post-679909","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth","tag-absa","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/679909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=679909"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/679909\/revisions"}],"predecessor-version":[{"id":680079,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/679909\/revisions\/680079"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/679983"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=679909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=679909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=679909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}