In March 2023, Absa released its annual salary report for 2022, detailing the compensation received by the bank’s senior executives during the previous fiscal year.
Absa reported substantial increase in its financial performance for the entire year ending in December 2022 despite the difficult business climate in South Africa.
The company reported a 15% increase in sales to R98.9 billion, a 13% increase in net interest income to R60.5 billion, and an 18% increase in non-interest income to R38.42 billion.
From R17.83 billion the previous year to R20.26 billion, the group’s headline earnings climbed by 14%. The reported headline earnings per share were 2,443 cents.
Net asset value (NAV) per share increased by 4% to 16,255 cents, while return on equity (RoE) increased from 14.6% to 15.6%.
Headline earnings in South Africa increased by 17% to R17.61 billion while pre-provision profit increased by 24% to R36.5 billion. With non-interest income down 9% and net interest income up 11%, overall revenue climbed by 13% to R74.3 billion.
87% of the group’s earnings came from South Africa.
exec compensation
CEO Arrie Rautenbach made R46.05 million in 2022, up 82.7% from the R25.22 million he took home in 2021, according to Absa’s single-figure report.
This consists of a cash incentive of R9.75 million and his fixed pay of R9.28 million.
The group CEO also received a vested performance award worth R8.75 million and a delayed payment.
The group CEO also received a deferred reward of R8.75 million and a performance award worth R18.28 million that has vested. With his pay, Rautenbach makes about R126,164 each day.
Jason Quinn, the company’s chief financial officer, earned R40.17 million for the year, up 52% from the R26.35 million he earned in 2021.
Punki Modise received the’smallest’ salary among the top eight executives at Absa, totaling R12.6 million.
Beginning on April 23, 2021, she was named executive director and interim director of finance until March 28, 2022. She was then appointed to serve from 29 March 2022 to 30 June 2022 as Interim Chief Executive: Retail and Business Banking and prescribed officer.
The eight executives’ combined pay came to R207 million, or an average of R25.8 million per officer.
According to data from Absa, the organization spent R27.87 billion in 2022 on staff costs for its 35,451 employees (including pay and benefits). This equals approximately R786,000 per employee.
The CEO made 58 times more money than the typical executive, which was 33 times more than the average worker.
The compensation of Standard Bank’s senior executives is shown in the table below, along with how much they made each day.
| Employee | Total Remuneration | Average per day |
| A Rautenbach | R46.05 million | R126 164 |
| J Quinn | R40.17 million | R110 054 |
| C Russon | R34.22 million | R93 753 |
| C Fox | R15.75 million | R43 150 |
| G Lee | R14.93 million | R40 904 |
| F Mkhize | R14.88 million | R40 767 |
| S Chibiya | R13.41 million | R36 739 |
| P Modise | R12.66 million | R34 684 |
| Absa average | R786 000 | R2 153 |
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