21.9 C
Nigeria
Friday, May 20, 2022

Read Online

…Ecobank Raises Remuneration of EDs by 9% after Sack of Workers

Meanwhile, in its annual report, Ecobank revealed that while reducing wages of its personnel by 9% in 2015 to $525 million from $576 million, it paid its executive directors $7.3 million. This figure which includes salaries and short-term benefits rose by 9% compared to 2014’s $6.6 million.
Ecobank recently sacked hundreds of staff in Nigeria, claiming it was a cost reduction measure in view of declining profit.
The Group explained the increase by the need to draw more talents, as well as protect its executives against some of the regulations implemented in the markets where it is present. The group takes into account governance regulations that hold Board members individually and collectively responsible for its actions.
“Consistent with Ecobank’s objective of being an employer of choice in our markets and attracting the best talent, Senior Executives are compensated with a mix of fixed compensation (salary, benefits and pension) and variable compensation (bonuses and share options scheme),” said Ecobank in its report.
In opposition to executive directors, non-executive directors of the Board of Administration received a total remuneration of $1.4 million, down 4% compared to 2014. Non-executive directors receive fixed fees of $100,000 per annum for services on the Board of ETI. The Chairman receives $150,000.
In addition, Directors receive sitting fees for attendance at Board and for attendance at Board and Board Committee meetings.
However, the group added “non-executive directors do not receive any short-term or long-term performance incentives”. Some of them which are shareholders will nevertheless receive part of the $48.2 million dividend recommended in 2015.
Let’s recall that the group’s performances, provision excluded and at constant exchange rates, were not strong. Net global profit generated in 2015 across the group’s various representations was $420.3 million against $530.2 million in 2014.
According to its consolidated financial statements, the Group’s profit after tax stood at $107.5 million against $394.7 million the previous year, thus slumping by 73%.
Remuneration should keep decreasing in 2016, as Ecobank plans to, in various markets, close some of its agencies and retrieve some of its products from these markets. This should lead to job cutting.

–Idriss Linge

Business Journal
We deliver business news that are professionally crafted and tailored to give you business freedom and expression that is aimed at increasing your spirit of enterprise.

Related Articles

- Advertisement -

Stay Connected

20,300FollowersFollow
3,319FollowersFollow
19,600SubscribersSubscribe
- CLICK TO DOWNLOAD -spot_img
- Proud Member -spot_img
- Advertisement -

Latest Articles