by 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
|
