It's Unlikely That Standard Bank Group Limited's (JSE:SBK) CEO Will See A Huge Pay Rise This Year

Key Insights

• Standard Bank Group's Annual General Meeting to take place on 10th of June
• Total pay for CEO Sim Tshabalala includes R9.98m salary
• Total compensation is 65% above industry average
• Standard Bank Group's EPS grew by 51% over the past three years while total shareholder return over the past three years was 70%

Performance at Standard Bank Group Limited (JSE:SBK) has been reasonably good and CEO Sim Tshabalala has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Standard Bank Group

How Does Total Compensation For Sim Tshabalala Compare With Other Companies In The Industry?

Our data indicates that Standard Bank Group Limited has a market capitalization of R308b, and total annual CEO compensation was reported as R71m for the year to December 2023. Notably, that's an increase of 19% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at R10.0m.

For comparison, other companies in the South Africa Banks industry with market capitalizations above R148b, reported a median total CEO compensation of R43m. This suggests that Sim Tshabalala is paid more than the median for the industry. Moreover, Sim Tshabalala also holds R156m worth of Standard Bank Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	R10.0m	R9.0m	14%
Other	R61m	R51m	86%
Total Compensation	R71m	R60m	100%

Talking in terms of the industry, salary represented approximately 42% of total compensation out of all the companies we analyzed, while other remuneration made up 58% of the pie. It's interesting to note that Standard Bank Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Standard Bank Group Limited's Growth

Over the past three years, Standard Bank Group Limited has seen its earnings per share (EPS) grow by 51% per year. Its revenue is up 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Standard Bank Group Limited Been A Good Investment?

Boasting a total shareholder return of 70% over three years, Standard Bank Group Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Standard Bank Group that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.