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Moneyweb reports that its recent analysis of remuneration of bank executives over the past decade shows that their fixed remuneration plus short-term incentives soared.
Even excluding the value of long-term incentives such as share options, executive pay at SA’s largest banks was up anything from 69% to 505%. But it was not just executive remuneration that skyrocketed. Over the same period, the median remuneration of employees at the five big banks more than kept up. Average remuneration at both Absa Group and FirstRand was up over 200% over the decade, while the increases at Nedbank and Standard Bank were up 191% and 183%, respectively. Average remuneration at Capitec was 173% higher. Average pay at each of the banks roughly tripled over the past 10 years. Over the same period (January 2009 to January 2019), consumer price inflation was up 167%, so growth in average remuneration at the banks outpaced inflation (at Capitec it was ever so slightly higher at half a percentage point a year). Meantime, staff numbers at the four full-service banks grew over the past decade, but at a rate lower than inflation (plus GDP growth). Coupled with this was the trend – particularly in recent years – for the four biggest banks to cut their physical footprints, both in terms of the number of branches as well as the floor space these take up. This generally meant fewer front-line bank service staff.
- Read the full original of the above report by Hilton Tarrant, inclusive of tables, at Moneyweb
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