What is Your Bank’s CEO Earning?

Are your monthly banking fees lining the pockets of the CEO? We look at their earnings. Spoiler alert! It is a lot more than you!
Sherryn
de Vos
Published: Monday, May 15th 2017
General
Previously, we looked at how customers were ranking their banks on social media and which bank came out tops in customers eyes. A report has recently been released disclosing the total remuneration for bank’s CEO’s for 2016. The report sees FirstRand’s CEO, Johan Burger heading up the overall earnings of bank CEO’s for the year.  Capitec’s Gerrie Fourie comes in at the bottom of the pack with a total remuneration package that is half of his FirstRand counterpart.
Chief executive  Bank Total remuneration
Johan Burger     FirstRand R33.947 million
Sim Tshabalala Standard Bank R32.078 million
Ben Kruger Standard Bank R31.985 million
Maria Ramos Barclays Africa Group R29.509 million
Mike Brown       Nedbank R22.281 million
Gerrie Fourie     Capitec R13.580 million
 

Tip Of The Iceberg For Barclays

It turns out that this breakdown is not fully inclusive of ABSA’s CEO full package. She had received restricted share awards that had not been included in the total remuneration disclosed in the annual report. The total worth of this was R8 million, which, when added to the total remuneration, puts her ahead of Johan Burger. This restricted share award was reportedly given to Ramos, top executives as well as 74 key employees, including executive directors and prescribed officers. It was a package to retain skills critical during the Barclays Plc sell-down and beyond. The awards are in the form of cash, and will be converted to equity “once executives are cleared to deal (as defined in the JSE Listings Requirements) having regard to the sell-down”. None of them have been converted from cash as yet.  

A Look At The Various Packages

The heads of the banks benefit from various different packages depending on the type of package they receive. Guaranteed packages include the cash package + Retirement contributions + Other allowances Short-Term Incentives (STI) are the Cash bonuses + portion in shares (deferred or otherwise) Long-Term Incentives (LTI) include Shares awarded as part of various incentive plans. Under these, the rankings are changed up somewhat.

Guaranteed Package

Chief Executive Officer Bank Guaranteed Package
Maria Ramos Barclays Africa Group R14.509 million
Gerrie Fourie Capitec R9.830 million
Johan Burger   FirstRand   R9.617 million  
Sim Tshabalala   Standard Bank   R9.198 million  
Ben Kruger   Standard Bank   R9.105 million  
Mike Brown   Nedbank   R7.781 million  
 

Short-Term Incentive/ Bonuses

The bonus structure places the rankings differently. Capitec once again finds itself at the bottom of the list with bonuses only hovering around R4 million, with First Rand bonuses being R20 Million more than Gerrie Fourie.
Chief executive Bank Variable Remuneration
Johan Burger   FirstRand   R24.33 million  
Ben Kruger Standard Bank   R19.269 million  
Sim Tshabalala Standard Bank   R16.1 million
Maria Ramos   Barclays Africa Group   R15 million  
Mike Brown   Nedbank   R14.5 million  
Gerrie Fourie   Capitec   R3.75 million  

Long-Term Incentive

This refers to the long-term incentives that were awarded years ago and in some cases, decades ago. These were shares vested and exercised during. This, however, more accurately offers a view of the actual amount of money taken home during the year and drastically shifts the rankings. We are including the total year's remuneration that was included in the first table as the total for take home remuneration.
Chief Executive   Bank   Value of Shares Vested, Exercised During the Year Total  
Gerrie Fourie   Capitec   R98.860m   R112.440m  
Johan Burger   FirstRand   R28.504m     R62.451m  
Maria Ramos   Barclays Africa Group   R27.238m   R56.747m  
Ben Kruger     Standard Bank   R20.335m   R52.320m  
Sim Tshabalala   Standard Bank   R10.701m   R42.779m  
Mike Brown   Nedbank   R16.911m   R39.192m