{"id":701513,"date":"2023-07-05T18:00:00","date_gmt":"2023-07-05T16:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=701513"},"modified":"2023-07-06T09:04:00","modified_gmt":"2023-07-06T07:04:00","slug":"meet-the-south-african-banking-bosses-who-earn-over-r120000-a-day","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/701513\/meet-the-south-african-banking-bosses-who-earn-over-r120000-a-day\/","title":{"rendered":"Meet the South African banking bosses who earn over R120,000 a day"},"content":{"rendered":"\n

While many hardships come with running a major company, one motivating incentive to take on the CEO position is the massive salaries they receive for a job well done \u2013 and this is no different for South Africa\u2019s most prominent banking CEOs.<\/p>\n\n\n\n

Being a Chief Executive Officer (CEO) is no easy feat. The role comes with immense pressure, as these leaders face ever-increasing regulatory scrutiny, complex market dynamics, and the responsibility to ensure financial stability. <\/p>\n\n\n\n

Balancing profitability with ethical practices is a constant challenge, demanding strategic acumen and a thick skin.<\/p>\n\n\n\n

However, due to the pressures of the job, banking CEOs – and those in other sectors – are paid handsomely for their work, especially if they\u2019re good at what they do. <\/p>\n\n\n\n

This is evident in the big paydays the CEOs at the helm of South Africa\u2019s biggest banks received in 2022 \u2013 including Investec, Capitec, Standard Bank, Absa, and Nedbank. <\/p>\n\n\n\n

While all the CEOs of these banks earned jaw-dropping salaries, one earned far more than the rest \u2013 the CEO of Investec Fani Titi.<\/p>\n\n\n\n

According to the group\u2019s annual report for the year ended 31 March 2023, Titi\u2019s single-figure earnings amounted to \u00a37.5 million (R177.6 million). This works out to a whopping R486,575 per day.<\/strong><\/p>\n\n\n

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Investec CEO Fani Titi<\/figcaption><\/figure><\/div>\n\n\n

To put this into perspective, Titi earned almost three times more than the second highest-paid banking CEO, Capitec\u2019s Gerrie Fourie, who earned R62.09 million and works out to around R170,109 per day.<\/p>\n\n\n\n

Put another way, according to Stats SA\u2019s latest quarterly employment survey (QES), the average formally-employed non-agricultural worker in South Africa earns R25,304 per month or R303,648 annually \u2013 meaning Titi earned 1.6 times the annual average wage in a single day. <\/p>\n\n\n\n

However, it must be noted that Investec\u2019s Directors are paid in Pound Sterling (\u00a3), meaning they earned considerably more when converted to the local currency, given the rand\u2019s weakness. <\/p>\n\n\n\n

Standard Bank CEO Sim Tshabalala earned the third highest pay at R55.69 million or R152,575 per day, while Absa\u2019s Arrie Rautenbach and Nedbank\u2019s Mike Brown are at the bottom \u2013 making R46.05 million and R43.6 million or R126,164 and R119,452 per day, respectively.<\/p>\n\n\n\n

Bank<\/th>CEO<\/th>Annual salary<\/th>Per day<\/th><\/tr><\/thead>
Investec<\/td>Fani Titi<\/td>R177.6 million<\/td>R486 575<\/td><\/tr>
Capitec<\/td> Gerrie Fourie<\/td>R62.09 million<\/td>R170 109<\/td><\/tr>
Standard Bank<\/td>Sim Tshabalala<\/td>R55.69 million<\/td>R152 575<\/td><\/tr>
Absa<\/td>Arrie Rautenbach<\/td>R46.05 million<\/td>R126 164<\/td><\/tr>
Nedbank<\/td>Mike Brown<\/td>R43.6 million<\/td>R119 452<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n

CEO salaries have increased exponentially <\/strong><\/p>\n\n\n\n

According to a study conducted by the Economic Policy Institute<\/a> in 2021, over the past 45 years (since 1978), CEO compensation has increased by a staggering 1,460% \u2013 outstripping even the best-performing stock markets, including the S&P 500\u2019s notable growth of 1,063% over the same period. <\/p>\n\n\n\n

The study analysed the CEO earnings of the top 350 firms in the United States of America, using a \u201crealised measure\u201d that included stock awards when vested and stock options when cashed in and ownership is taken.<\/p>\n\n\n\n

According to the report, CEOs are getting ever-higher pay over time because of their power to set pay and because so much of their salary is stock-related.<\/p>\n\n\n\n

Considering our South African banking CEO pay structure, this is not hard to believe.<\/p>\n\n\n\n

According to Investec group\u2019s annual report, Titi saw his long-term incentives rise by 191% from \u00a31.6 million (R37.90 million) in 2022 to \u00a34.8 million (R113 million).<\/p>\n\n\n\n

Captitec\u2019s CEO Fourie also received a long-term incentive (including vested awards) of R39.74 million as part of this salary. Standard Bank\u2019s and Absa\u2019s CEOs, Tshabalala and Rautenbach, also received deferred and performance awards. <\/p>\n\n\n\n

Tshabalala received a deferred award of R10.65 million and a performance award of R25.8 million, and Rautenbach received a deferred award of R8.75 million and a performance award of R18.28 million.<\/p>\n\n\n\n

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Read: Big changes coming to banks in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa’s top banking CEOs have received massive paydays for 2022.<\/p>\n","protected":false},"author":10,"featured_media":701595,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[2334,1798,1498,1799,499],"class_list":["post-701513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-absa-bank","tag-capitec","tag-investec","tag-nedbank","tag-standard-bank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/701513","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=701513"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/701513\/revisions"}],"predecessor-version":[{"id":701785,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/701513\/revisions\/701785"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/701595"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=701513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=701513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=701513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}