Editor’s note: A previous version of this article incorrectly attributed long-term incentive awards made to Barclays Africa Group directors to their 2017 remuneration. These are based on performance over the coming three years and will be included in single-figure disclosure for each year as they vest.
Capitec Bank CEO Gerrie Fourie is the top-paid executive among the big five banking groups. In 2017, his remuneration totalled R56.6 million, comprising R15 million in fixed remuneration and short-term incentives, as well as the R41.6 million in long-term incentives which will vest this year based on performance in the 2018 financial year. His remuneration is heavily skewed towards long-term incentives.
FirstRand CEO Johan Burger, who retired on March 31 2018, was paid a total of R53.89 million in the year to June 30 2017. This included R18 million in long-term incentives awarded during the year.
FirstRand uses a different methodology from the other four banks (Barclays Africa Group, Standard Bank, Nedbank Group, Capitec Bank). It discloses the value of long-term incentives awarded during the year, versus the other four which disclose the awards which vested in 2017. Investec is deliberately excluded from this comparison as remuneration is in pounds, which skews it dramatically (after conversion).
Standard Bank Group CEO Sim Tshabalala was paid a total of R48.5 million in 2017, Nedbank Group CEO Mike Brown was paid R38.1 million, and Barclays Africa Group CEO Maria Ramos was paid a total of R37.6 million, comprising her fixed remuneration, non-deferred short-term incentives plus payments from those short-term incentives previously awarded.
Remuneration for executives is comprised of the following, and disclosed accordingly:
· Fixed remuneration (salary and benefits)
· Short-term incentives (generally cash and share-linked deferred awards)
· Long-term incentives (share options, share appreciation rights, restricted share plans, etc)
Remuneration is disclosed for executive directors and (what banks define as) prescribed officers.
When considering short-term incentives (whether cash or deferred), seven of the 27 executive directors and prescribed officers at the big five were paid R20 million or more in the most recent financial year. It is no surprise that these seven, plus Ramos and Hodnett, are the nine best-paid executives when looking onlyat guaranteed pay plus short-term incentives.
‘Only’ four executives (Barclays Africa’s Ramos, Hodnett, Peter Matlare as well as Capitec’s Fourie) have fixed remuneration, i.e. guaranteed take-home pay, of over R10 million per annum.
|Guaranteed package (CTC)||Short-term incentive||Long-term incentive*||Total|
|Gerrie Fourie||Capitec Bank CEO||R10.954m||R4.049m||R41.641m||R56.644m|
|Johan Burger1||FirstRand CEO||R9.740m||R25.8m||R18.350m||R53.89m|
|Sim Tshabalala||Standard Bank Group CEO||R9.103m||R25.4m||R14m||R48.503m|
|Ben Kruger||Standard Bank Group executive director||R9.079m||R24.95m||R12.5m||R46.529m|
|Peter Schlebusch||Standard Bank Group CE PBB||R6.950m||R27m||R10m||R43.95m|
|Alan Pullinger1||FirstRand deputy CEO||R7m||R21.2m||R14.63m||R42.83m|
|André du Plessis||Capitec Bank CFO||R8.247m||R3.118m||R30.228m||R41.593m|
|David Munro2||Standard Bank Group CE CIB||R2.844m||R13.1m||R25m||R40.944m|
|Mike Brown3||Nedbank Group CEO||R8.175m||R13.75m||R16.199m||R38.124m|
|Maria Ramos||Barclays Africa Group CEO||R14.959m||R15m||R7.599m5||R37.559m|
|Brian Kennedy3||Nedbank Group ME CIB||R4.571m||R16.75m||R14.928m||R36.249m|
|Kenny Fihla4||Standard Bank Group CE CIB||R4.015m||R20m||R10m||R34.015m|
|James Formby1||FirstRand – CEO, RMB||R3.241m||R22.5m||R7.5m||R33.241m|
|David Hodnett||Barclays Africa Group deputy CEO||R12.009m||R14.5m||R6.65m5||R33.159m|
|Arno Daehnke||Standard Bank Group FD||R5.697m||R16.75m||R10m||R32.447m|
|Jacques Celliers1||FirstRand – CEO, FNB||R6.751m||R12m||R11.943m||R30.694m|
|Margaret Nienaber||Standard Bank Group CE Wealth||R5.517m||R14m||R10m||R29.517m|
|Mfundo Nkuhlu3||Nedbank Group COO||R5.452m||R8m||R12.289m||R25.741m|
|Harry Kellan1||FirstRand FD||R6m||R8.5m||R8.6m||R23.1m|
|Chris de Kock1||FirstRand – CEO, Wesbank||R4.703m||R8.5m||R9.2m||R22.403m|
|Raisibe Morathi3||Nedbank Group CFO||R4.87m||R8.25m||R8.639m||R21.759m|
|Peter Matlare||Barclays Africa Group deputy CEO||R10.009m||R10m||–||R20.009m|
|Ciko Thomas3||Nedbank Group ME RBB||R4.469m||R8.25m||R5.266m||R17.985m|
|Nomkhita Nqweni||Barclays Africa Group CE: WIMI||R7.509m||R6m||R2.85m5||R16.359m|
|Jason Quinn||Barclays Africa Group FD||R5.309m||R8m||R2.85m5||R16.159m|
|Iolanda Ruggiero3||Nedbank Group ME Wealth||R3.705m||R5.25m||R3.897m||R12.852m|
|Nkosana Mashiya||Capitec Bank executive director||R4.042m||R1.523m||R5.094m||R10.659m|
1 For the year to 30 June 2017
2 Remuneration for five months (to 31 May 2017)
3 Includes long-term incentives, matched shares, dividends
4 Remuneration for six months (from 1 July 2017)
5 This figure includes all deferred remuneration, which comprises the value of the restricted share awards made as well as deferred STI payments. These are not disclosed separately.
The best paid CFO or financial director is Capitec’s André du Plessis, but this is skewed by the R30 million in long-term incentives which will vest this year based on performance in the 2018 financial year.
Standard Bank’s Arno Daehnke was paid over R30 million in the year, while FirstRand’s Harry Kellan and Nedbank’s Raisibe Morathi were paid over R20 million. Barclays Africa Group’s Jason Quinn was paid R16.1 million.
The best-paid prescribed officer is Peter Schlebusch, the chief executive for personal and business banking at Standard Bank, who stepped down on March 31. He was paid R44 million, of which R27 million comprised short-term incentives (R14.85 million is share-linked and deferred).
All four executives running corporate and investment banking divisions earn over R30 million a year (this double counts David Munro and Kenny Fihla at Standard Bank as both headed CIB in 2017). Barclays Africa’s CIB unit continues under co-chief executives, Temi Ofong and Mike Harvey, who are not on the executive committee (Exco) and report directly to Ramos.
Hilton Tarrant can still be contacted at email@example.com.
He owns shares in FirstRand, first purchased in July 2011.