NGX Group Compensation for 3 Directors comes to N754 million
- Posted on March 14, 2022
- Featured
- By Faith Tiza
NGX
Group Compensation for 3 Directors comes to N754 million
For the year ended December 2021, the Nigerian
Exchange Group (NGX), which operates the Nigerian Stock Exchange, paid its
three executive directors a total of N754.8 million in executive compensation.
The amount paid this year is up 78.2 percent from the
N423.1 million paid a year ago when the company only had two executive
directors.
The pay and benefits paid to executive management of
multinationals and publicly traded corporations are referred to as executive
compensation. The data are revealed in a company's financial statement. The
Chief Executive Officer and members of the Executive Director who are not Board
members are included in the executive directors, according to the NGX.
The NGX's compensation plan for directors comprises a
monthly basic pay, various allowances, performance incentives (paid annually in
arrears), director fees (paid quarterly/annually in arrears), and sitting
allowances, according to the company (after board and committee meetings).
Breakdown
of NGX Executive Compensation
The company paid out a total of N811.6 million in
salary to board members during the year, with sitting allowances and executive
compensation accounting for N56.7 million and N754.8 million, respectively.
The Chairman of the Board of Directors was paid N6.6
million, up from N4.9 million the previous year.
The highest-paid board member, usually the MD/CEO,
earned N160 million in executive compensation, up from N156.2 million a year
before.
When it comes to executive salary, according to records,
NGX is one of the highest-paying corporations listed on the Nigerian Exchange.
For comparison, Zenith Bank paid out around N1 billion
in executive remuneration to its directors in 2021. There are six executive
directors at Zenith Bank. In 2021, GTB Holdings, one of Nigeria's leading
banks, awarded executive remuneration of N757.3 million.
Salary
breakdown for NGX
The company also revealed that it has 205 employees,
down from 269 a year ago, after laying off 65 non-management employees.
Despite the decrease in headcount, total salaries
given to employees throughout the year were N3.2 billion, almost unchanged from
the previous year.
According to Nairametrics research, NGX employees earn
around N16 million per year on average, making it one of the best-paying
companies on the NGX.
A closer examination of the record reveals that no
employee receives less than N2 million per year. In fact, 79 employees, or 39%
of the whole workforce, make more than N9.5 million per year. Over half of the
staff make more than N5 million per year.
Closer
look
For the year ended December 2021, NGX recorded a
profit after tax of N2.2 billion, up 22% from the previous year.
However, income from its partner companies CSCS and NG
Clearing, in which it holds 31 percent and 27.7% respectively, accounted for a
large portion of the profit (N2.1 billion).
Its attributed gains of N2.1 billion and a loss of N38
million from CSCS and NGX, totaling N2.1 billion, which is recorded as profits
in its accounts.
NGX's profits would have been N281.8 million if not
for profits from its associates.
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