South Africa’s banking sector saw a significant shake-up this week following the unexpected Sunday night resignation of Standard Bank South Africa’s CEO, and Group Deputy CEO, Kenny Fihla.
On Monday it was announced that Fihla would take on the role of Absa CEO from June 17, 2025, pending regulatory approval. He has reportedly been put on ‘gardening leave’ for the remainder of his tenure at Standard Bank.
Fihla spent 18 years with Standard Bank and is credited with doubling the headline earnings of its Corporate Investment Banking (CIB) division, to R20.5 billion, since taking the helm in 2017.
But with success also comes remuneration of the kind that the average South African can only dream of. Although his forthcoming salary at Absa has yet to be disclosed, Fihla earned a tidy sum of money in his role at Standard Bank.
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According to the bank’s 2024 financial statement, Fihla earned a total of R67.2 million in 2024 and R69.9 million in 2023, mostly through bonuses and performance incentives. This amounts to R183,500 per day.
His fixed annual salary for 2024 is listed at R7.9 million, with employer retirement contributions of R841,000 and other benefits amounting to R479,000. However, the division CEO was also paid short-term incentives of R26 million last year, and performance rewards totalling R35.2 million.
Standard Bank Group CEO Sim Tshabalala earned a total of R89.2 million in 2024, through fixed remuneration of R11.8 million and incentives of around R59 million.
Absa’s leadership remuneration was not quite in the same league, with interim CEO Arrie Rautenbach having taken home R35.4 million in 2024.
Why do chief executives earn such substantial sums of money?
According to Salary.com, CEOs offer a standard of talent that is required to produce company profits and perform well. It says there is a limited number of people that can manage the skills and responsibilities that come with such a position.
“That is why the market has determined that people with these skills are worth a lot of money to their companies,” Salary.com added.
Recognised leader
Absa has expressed great confidence in the abilities of incoming CEO Fihla, describing him as a recognised leader with substantial Pan-African banking experience.
“Kenny is a recognised leader with substantial Pan-African banking experience, strong relationships across the financial ecosystem, and a proven ability to drive results in complex environments,” said Absa Board chairperson Sello Moloko.
“The Board is confident that his leadership will further enhance Absa’s positive momentum and our ability to deliver meaningful value to our clients and stakeholders,” Moloko added.
IOL