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Renée Bonorchis writes that the four chief executives of Absa, FirstRand, Nedbank and Standard Bank were paid almost a quarter of a billion rand in combined total pay in 2023, averaging R55.3 million per CEO.
On a total remuneration basis, which takes into account the value of long-term awards, Standard Bank's CEO Sim Tshabalala led the pack with R83.3 million. On a total single-figure basis, Mike Brown, the outgoing CEO of Nedbank, topped out at R92.5 million. But on a more like-for-like measure using the total awarded remuneration figure, Brown's pay was R46.42 million. That would make him the third-best paid of the four CEOs after FirstRand's Alan Pullinger at R51.45 million and ahead of Absa's Arrie Rautenbach at R40.03 million. The stark reality is that the bankers were paid remarkable amounts, compared to the many millions of South Africans trying to get by on social grants or the minimum wage, which amounts to less than R5,000 a month. Tracey Davies of shareholder activist group Just Share commented: “The figures are breathtaking in any context and morally reprehensible given the South African context of extremely high inequality. But as a society, we have been browbeaten into believing that this handful of individuals is so spectacularly special that it is unacceptable to question how much they earn.” In just under two decades, the big four banks have increased what they pay their CEOs by almost 500%. Meantime in real terms, taking inflation into account, wages in SA have declined in the last five years. There is a Companies Amendment Bill on its way – it needs to be signed off by President Cyril Ramaphosa. It will introduce a new measure for the pay gap, a new voting system for shareholders when it comes to compensation policies and the possibility for remuneration committee members to be barred from being a director of the company for a few years if they're voted out. The unintended consequences may be that, instead of potentially not being able to change a remuneration policy in between three-year binding voting periods, boards may overload pay upfront.
- Read the full original of the opinion piece in the above regard by Fin24
- Read too, New law to address ‘feeding frenzy’ at listed companies, at Mail & Guardian (subscriber access only)
Get other news reports at the SA Labour News home page