Directors Of 10 Banks Pocket N6.96bn Allowance, Compensation

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Directors of 10 banks collected N6.96bn sitting allowance and compensation in 2021; according to an analysis of the lenders’ financial results. The amount represents an increase of 3.32% from N6.74bn the directors received in 2020.

Extracts from audited financial results and accounts for the full year ended December 31, 2021 revealed that Zenith Bank; followed by Stanbic IBTC Holdings, reported the highest sitting allowances and compensation, while Unity Bank reported the least.

Furthermore, Stanbic IBTC Holdings in its report said, “The group will continue to ensure its remuneration policies and practices remain competitive; drive performance are align across the Group and with its values.”
Specifically, GTCO and UBA reported a 17.8% and 6.3% drops, respectively, in their executive compensation and sitting allowances.

Thereafter, Wema Bank reported N297.84m executive compensation/fees for the second consecutive year; Unity Bank grew its sitting allowances by 3.9% to N38.6m in 2021 from N37.15 in 2020. In addition, Fidelity Bank reported N312m executive compensation, fees and sitting allowances in 2021; a decline of 4% from N529m reported in 2020.

However, the Chairman of Progressive Shareholders Association of Nigeria, Boniface Okezie, said although it was important for banks to remunerate their directors properly; there was also the need to ensure this was not done recklessly. According to him, there is a need for the Central Bank of Nigeria to beam its searchlight on banks’ total payment to directors; warning that it will be wrong for the directors to feed fat at the expense of depositors and other stakeholders.

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