The joint CEOs of Standard Bank, Sim Tshabalala and Ben Kruger, earned a hopping R44.5 million each in 2016 which puts them amongst the top earners within South Africa’s corporate landscape. Their basic salary is at R7.5 million each and the rest is made of all sorts of executive incentives. Such earnings are bound to cause a national outcry in a country suffering from high levels of poverty and ranked as one of the most unequal societies in the world.
The total earnings of R44.5 million means that Standard Bank CEOs earn more than 105 times the proposed national minimum wage of R3 500 per month. According to Indeed, a Standard Bank teller earns about R6 206 per month which adds up to about R75 000 per year. As such an average bank teller earns 56 times less than the Standard Bank CEOs.
Standard Bank is also generous to its non-executive directors with non-executive chairperson of the board, Thulani Gcabashe, getting R6.5 million. These figures put Standard Bank executives at the top across the continent which is perhaps fitting because theirs is the biggest banking operation in Africa.
The 150 years old operation has presence across 20 African countries and employs about 70 000 people. The group recorded 10% growth in total income from banking activities to R99 billion in 2016. This came from net interest income of R56.8 billion from R49.3 billion in 2015 and non-interest revenue of R42.9 billion from R41.8 billion. And then there was income from investment management and life insurance activities of R21.3 billion down from R23.9 billion. This produced total income of R121.2 billion from R115 billion in 2015.
Standard Bank reports a total top executive remuneration bill of R209.2 million up from R190.4 million in 2015. This accounts for the top executive team of six people including Kruger and Tshabalala. The other four are A Dhaenke who earned R25.8 million, DC Munro (R45.2 million), PL Schlebusch (R41.8 million), SP Ridley (7.2 million) who retired on 30 April 2016.
Alongside Gcabashe Standard Bank features a list of 15 non-executive directors most of whom earn more than R1 million rands as reflected in the table below.
|Standard Bank 2016 Executive Remuneration (Rands in Million)|
|BJ Kruger (CEO)||9,1||10||25,2||44,4||43,2|
|SK Tshabalala (CEO)||9,1||10||25,2||44,5||43,4|
|A Daehnke (FD)||3,3||7,4||15,1||25,8|
|Total Exec Dir||209||190,4|
|STI = Short Term Incentive; LTI = Long Term Insurance|
|Standard Bank 2016 Non Exec Remuneration (Rands in Million)|
|TS Gcabashe (Chair)||5,9||0,538||6,5||3,9|
|Total Non Exec||30,2||21,2|