Stanbic Bank has revealed that its chief executive, Greg Brackenridge, works for the bank at no cost.
This revelation has been made in the bank’s financial report for the year ended December 2017.
Apparently, the Stanbic CEO’s compensation is absorbed by Standard Bank Group of South Africa which is its parent company.
“In line with Standard Bank Group’s transfer pricing policy, Greg Brackenridge’s function is a group oversight role and therefore the majority shareholder, Standard Bank of South Africa Limited, bears all his employment costs and benefits,” Stanbic says in its latest annual report. “Those costs and benefits are not recharged to Stanbic Holdings Plc.”
Mr Brackenridge’s annual pay is likely to be upwards of Sh. 60 million, judging by the compensation of Stanbic’s non-executive director Michael Blades, who has since resigned.
Mr Blades earned a total of Sh. 55.4 million in 2016 from Stanbic’s subsidiaries, making it the largest payout to a non-executive director among NSE-listed firms. Mr Brackenridge is South African while Mr Blades holds a British and South African citizenship.
Standard Bank is, however, likely recouping the cost of the Stanbic CEO total compensation indirectly through other fees it charges the local subsidiary.
Stanbic paid the parent firm fees and other charges amounting to Sh. 712.5 million in the year ended December, up from Sh. 572 million a year earlier. These included franchise fees, which rose to Sh. 551.2 million from Sh. 540.6 million.
