IN a country where half the population is unemployed, banking services are generally expensive and levels of inequality rank among the highest in the world, South Africa's prominent banking chief executives saw their earnings skyrocket in the 2023/24 financial year.
Among the country’s big-earning bankers, Investec's chief executive Fani Titi topped the list, with a whopping R175 million – about R475 452 a day – making him the highest-paid chief executive in the country’s banking sector.
It’s important to note that Investec’s directors are paid in pounds sterling, so their earnings are significantly higher when converted to the local currency due to the weakness of the rand.
Nedbank chief executive Mike Brown earned R92.5m, about R253 425 a day. His earnings included significant long-term incentives.
Standard Bank's chief executive Sim Tshabalala, who ranked at the top in the 2022/23 financial year, received R83.3m, translating to R228 230 a day. This was a significant increase on the R55.7m he earned in the previous year.
Capitec’s chief executive Gerrie Fourie took home R65.74m, about R180 109 a day.
Absa chief executive Arrie Rautenbach earned R40.03m, or R109 685 a day, which was a decrease from the prior year.
FNB chief executive Jacques Celliers earned at least R31.9m, about R87 458 a day.
The combined earnings of these banking bosses reflect the lucrative compensation packages typical in the banking industry. This raises questions about income disparity, especially in a country where the majority of the population lives in poverty.
Reports also indicate that basic living costs, such as transport, electricity and nutritious food, are outstripping inflation in South Africa, and some households, especially those earning minimum wage, are simply not coping.