Tuesday, May 28, 2024

Standard Bank CEO scores massive R83 million payday

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Standard Bank’s seven senior executives earned a combined R411 million for the 2023 financial year – R1.1 million per day.

For the full year ended 31 December 2023, the group saw its headline earnings increase by 27% from R33.9 billion to R42.9 billion.

The group’s Africa Regions franchise contributed 42% to group headline earnings (up 49% year-on-year growth to R18.2 billion), while headline earnings in South Africa only grew by 3% to R16.8 billion.

This profit improvement came despite a rise in credit impairments from R13.3 billion in FY22 to R16.2 billion in FY23 due to the strain in the Personal and Private Banking sectors.

The board increased its total dividend to 1,423 cents per share (FY22: 1,206 cents), equating to a dividend payout ratio of 55%.

Standard Bank Financials FY22 Restated FY23
Total net income (Rm) 148 117 177 616
Headline earnings (Rm) 33 853 42 948
Earnings Per Share (cents) 2 074.1 2 666.6
Headline Earnings Per Share (cents) 2 050.4 2 590.4
Total Dividend (cents) 1 206 1 423
Return on equity 16.3% 18.8%
Banking cost-to-income ratio 53.9% 51.4%

Pay for senior executives

Group CEO Sim Tshabalala saw his single-figure total remuneration increase by 49.6% from R55.7 million in FY22 to R83.3 in FY23.

Kenny Fihla, CEO of Corporate and Investment Banking, was the second highest earner, with his pay increasing by 39.1% from R50.2 million to R69.9 million.

Group CFO Arno Daehnke and Group COO Margaret Nienebaar saw their pay increase by 55.2% and 37.0% to R68.1 million and R59.8 million, respectively.

Funeka Montjane, CEO of Personal and Business Banking, saw her pay rise by 55.9% to R59.5 million, while Bill Blackie, Business and Commercial Banking, saw his pay rise by 35.2% to R46 million.

Yuresh Maharaj, CEO of Investment and Asset Management, which includes Liberty after its merger into the Standard Bank Group, received a yearly pay of R25.1 million for FY23*.

Many of the increases were linked to the vesting of the long-term performance reward plan (PRP). Tshabalala saw his PRP award increase by 84.4% from R25.8 million in FY22 to R47.6 million in FY23.

Executive Position FY22 FY23 Per Day
Sim Tshabalala Group CEO R55 694 000 R83 304 000 R228 230
Kenny Fihla CIB CEO R50 240 000 R69 903 000 R191 515
Arno Daehnke Group CFO R43 837 000 R68 057 000 R186 458
Margaret Nienebaar Group COO R43 644 000 R59 797 000 R163 827
Funeka Montjane PPB CEO R38 142 000 R59 454 000 R162 888
Bill Blackie BCB CEO R34 047 000 R46 035 000 R126 123
Yuresh Maharaj IAM CEO  -* R25 057 000 R68 649
Total R265 604 000* R411 607 000  R1 127 690
*No FY22 figure provided for Maharaj

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