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Home / Latest Update / Ten Banks Paid 143 Directors N7.6bn In 2015

Ten Banks Paid 143 Directors N7.6bn In 2015


The directors of ten banks collected N7.6 billion as fees and allowances in 2015, representing 1.58 percent of the banks’ profitability during the year.

The ten banks are Guaranty Trust Bank, Zenith bank, Access Bank, FirstBank, UBA, Union Bank, Diamond Bank, Sterling Bank, Fidelity and Wema Bank.

Analysis of financial statements of the banks for the 2015 financial year, reveal that the ten banks increased total money paid to 143 directors by 11 percent or N742 million, from N6.84 billion in 2014 to N7.58 billion in 2015.

The amount paid to the directors represents 1.58 percent of the profit before tax of the ten banks, which stood at N480 billion in 2015.

The amount paid to the directors also represented 2.0 percent of total staff salaries (personnel cost) in the ten banks.

Further analysis reveals inadequate disclosures relating to directors compensation, fees and allowances to board chairmen, and salaries of chief executive officers.

For example, Wema Bank did not specify amount paid as compensation to executive directors, while Access Bank and Sterling Bank failed to disclose money paid to their chairmen and chief executive officers.

Total board expenses
GTBank led the ten banks, with N1.25 billion paid to its 14 directors in 2015, up from N1.2 billion in 2014. Zenith Bank came second, with N1.145 billion paid to 10 directors in 2015, up from N630 million in 2014.

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Acess Bank and FirstBank came third and fourth respectively, with N1.08 billion and N1.05 billion paid to 14 and 17 directors respectively.

The fifth highest board expenses was incurred by UBA, which paid N603 million to its 16 directors in 2015, up from N600 million in 2014.

Others are Union Bank-N983 million, Diamond Bank-N195 million, Sterling Bank-N265 million, Fidelity Bank-N766 million and Wema Bank-N235 million

Executive Compensation
The ten banks, with the exception of Wema Bank, paid N4.63 billion to 52 executive directors.

This represented two percent decline from N4.72 billion in 2014. On the average, each executive directors got N89 million in 2015, down from N91 million in 2014.

FirstBank came first as its six executive directors (E.Ds) were paid N784 million, up from N694 million in 2014. GTbank came second, with N718 million paid to six E.Ds, up from N691 million. The seven E.Ds of Access bank were paid N705 million in 2015, down from N1,12 billion in 2014. Union Bank paid its six E.Ds N625 million in 2015, up from N542 million in 2014, while Zenith Bank paid its four E.Ds N595 million in 2015, up from N414 million in 2014.

UBA paid its six E.Ds N547 million, down from N555 million in 2014. Others were Diamond Bank with five EDs – 149 million, Sterling Bank with six EDs – N156 million, and Fidelity with six EDs – N346 million.

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Union Bank CEO tops pay Analysis of amount paid to the highest director, the Chief Executive Officer (CEOs), by eight banks reveal the CEOs of eight banks were paid N903 million as salaries and compensations.

This was 13 percent higher than the N798 million paid to the CEOs in 2014. The CEO of Union Bank received the highest pay with N208 million, representing 36 percent or N55 million increase from the N153 million earned in 2014.

GTBank CEO came second earning receiving N204.9 million, up by 12 percent or N22 million from N183 million in 2014. The CEOs of UBA and Fidelity Bank came third and fourth earning N125 million and N102 million respectively in 2015, up from N116 million and N94 million in 2014.

Others are FirstBank-N90 million, Zenith Bank-N78 million, Wema Bank-N70 million, and Diamond Bank-N25 million.

Shareholders call for review
Shareholders however were of the view that the amount paid to banks directors though huge and not in sync with economic realities, is necessary to prevent them from stealing depositors money, and also in view of the amount of work they have to do to generate earnings for their banks. “If the banks’ executives are

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