Absa’s top executives’ massive payday – earning a collective R207 million

Absa’s annual remuneration report for 2022 was released in March 2023 – revealing how much the bank’s top execs earned over the last financial year.

In its financial results for the full year ending December 2022, Absa showed strong growth despite the challenging environment within South Africa.

The group reported revenue up 15% to R98.9 billion, with net interest income rising 13% to R60.5 billion and non-interest income increasing 18% to R38.42 billion.

Group headline earnings increased by 14% to R20.26 billion from R17.83 billion the year prior. Headline earnings per share were recorded at 2,443 cents.

The group declared a full-year dividend of 300 cents per ordinary share, up 65.6% from 785 cents the year before.

Return on equity (RoE) improved to 15.6% from 14.6%, and net asset value (NAV) per share grew by 4% to 16,255 cents.

South African headline earnings grew 17% to R17.61 billion, as pre-provision profit grew 24% to R36.5 billion. Total revenue increased 13% to R74.3 billion, with non-interest income down 9% and net interest income rising 11%.

South Africa contributed 87% of group earnings.

Executive pay

According to Absa’s single-figure report, CEO Arrie Rautenbach’s pay amounted to R46.05 million in 2022 – an 82.7% increase from the R25.22 million he received in 2021.

This comprises his fixed salary of R9.28 million and a cash incentive of R9.75 million. The group CEO also got a deferred award of R8.75 million as well as a performance award vested of R18.28 million.

Rautenbach’s salary equates to him earning around R126,164 a day.

The group’s CFO, Jason Quinn, took home R40.17 million for the year – a 52% increase from the R26.35 million he received in 2021.

Of Absa’s top eight executives, Punki Modise took home the ‘smallest’ amount among the executives at R12.6 million.

She was appointed as Interim Financial Director and executive director on 23 April 2021 until 28 March 2022. She was subsequently appointed as Interim Chief Executive: Retail and Business Banking and prescribed officer from 29 March 2022 until 30 June 2022.

Combined, the eight executives received a total of R207 million in salaries – averaging R25.8 million per exec.

Based on Absa’s reported numbers, the group spent R27.87 billion on staff costs in 2022 for its 35,451 employees (including salaries and benefits). This translates to around R786,000 per employee.

The average executive earned 33 times more than the average employee, with the CEO earning 58 times more.

The table below outlines what Standard Bank’s top executives earned and how that translates per day.

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