{"id":864512,"date":"2026-06-24T14:56:12","date_gmt":"2026-06-24T12:56:12","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=864512"},"modified":"2026-06-24T14:56:14","modified_gmt":"2026-06-24T12:56:14","slug":"outrage-over-absa-ceos-r148-million-payday","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/864512\/outrage-over-absa-ceos-r148-million-payday\/","title":{"rendered":"Outrage over Absa CEO’s R148 million payday"},"content":{"rendered":"\n

Absa is facing significant backlash from institutional investors over the pay package of its executives, specifically its new CEO, Kenny Fihla. <\/p>\n\n\n\n

The Big Four bank has now met with shareholders to address their displeasure over the incredibly large amounts given to its leaders, with Fihla’s package of close to R150 million drawing most of the criticism. <\/p>\n\n\n\n

Fihla took over as the group’s CEO in June 2025, having left his roles as Standard Bank Group Deputy CEO and Standard Bank South Africa CEO. <\/p>\n\n\n\n

Fihla earned over R148 million for the 2025 financial year, which included R98 million in buyout awards, linked to unvested equity, which he forfeited when he left Standard Bank. <\/p>\n\n\n\n

It comprised a R20.7 million cash-based buyout and a R77.7 million share-based buyout. His pro-rata fixed remuneration, which includes basic salary and medical aid, stood at R6.2 million. <\/p>\n\n\n\n

He also earned R23.3 million for short-term incentives, which reflected his annual performance bonuses for the work he did after taking over. <\/p>\n\n\n\n

He also received Long-Term Incentive (LTI) awards amounting to R20 million, provided he meets the group’s long-term targets. <\/p>\n\n\n\n

While his total remuneration stood at R148 million, his single-figure remuneration, which does not include unvested long-term incentives, stood at R128 million. <\/p>\n\n\n\n

Fihla’s tenure began strongly, with the group posting double-digit increases in key financial metrics. <\/p>\n\n\n\n

The Group saw a 12.25% increase in headline earnings, rising to R24,762 million from R22,059 million in 2024.<\/p>\n\n\n\n

Headline earnings per share (HEPS) jumped by 12.20% to 2,987.0 cents, while basic earnings per share also grew to 2,679.6 cents.<\/p>\n\n\n\n

Shareholders are not happy <\/h2>\n\n\n
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Despite improved financial performance since taking the helm, shareholders have expressed discontent with his pay package. <\/p>\n\n\n\n

At the group’s AGM, over 43% of shareholders voted against implementing the group’s remuneration policy for its executives. <\/p>\n\n\n\n

Given that the vote exceeded the 25% threshold for non-binding advisory votes, shareholders would be allowed to raise concerns and submit recommendations on the pay report. <\/p>\n\n\n\n

Absa\u2019s remuneration committee said the move was a necessary upfront investment to anchor a revised pan-African strategy.\u00a0<\/p>\n\n\n\n

Institutional investors are increasingly opposing large sign-on incentives that are not immediately aligned with performance. This is particularly present in South Africa, given the massive income inequality. <\/p>\n\n\n\n

Absa has now held engagements with shareholders who represent around 12% of the group’s ordinary shares in issue. <\/p>\n\n\n\n

Absa’s group Chairman, Ren\u00e9 van Wyk, and the Chairman of its group Remuneration Committee, Rose Keanly, spoke with shareholders who raised several concerns or raised questions on: <\/p>\n\n\n\n