7 Key Takeaways from The CEO Remuneration 2021 Report: COVID to Collaboration

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Tuesday, August 10, 2021 / 12:33 PM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV

 

Proshare, Nigeria's leading financial information hub recently published the fourth edition of the CEO Remuneration Report which explored the theme: CEO Remuneration Report 2021: Covid to Collaboration".

 

Adaeze Nwachukwu a market analyst with Proshare provided insight into the report, and some of the key takeaways that relate to the interests of investors and shareholders in the financial and capital market.

 

From her analysis here are 6 interesting takeaways from the report.


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COVID to Collaboration

According to her the COVID 19 pandemic brought to the fore the need for collaboration from work-based, gender, companies and the global level.

 

She highlighted the fact that during the COVID 19 pandemic companies rallied together in Nigeria, through the auspices of the Coalition against Covid 19, CACOVID to support the efforts of government in containing the spread of the virus.

 

At the global level, she cited the decision of the rich countries through the G-7 and G-20 to mobilize funds to assist low-income countries to stabilize amidst the Covid 19 crisis, as a good example of collaboration.

 

In terms of work-based collaboration, the analyst noted that it was a shift from teamwork to real-time round-the-clockwork experience.

 

CEO Base Remuneration and Total Compensation

In this area Adaeze revealed that the report went beyond the base salary level assessment to dividend earnings, bonuses, and all earnings that are declared.

 

For the base salary the Top Ten Highest Paid CEOs accounted for N3.6bn which is higher than the internally generated revenue, IGR of 3 states while the total compensation which covers dividend earnings and bonuses reached N8.8bn.

 

It was also discovered that some CEOs own shares in their company while others do not have any shares.


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Adoption of the Hybrid Work Pattern

From the Proshare survey carried out on work patterns which captured professionals in the country, 90% adopted the "Hybrid Work Pattern" which is the flexible mode of work blending remote and physical work experience.

 

The Agric sector had the highest demand for the hybrid work pattern, while 10% said they preferred the remote work experience.

 

Gender Diversity in Boards

The report according to her explored the issue of deepening gender diversity across the boards of companies and discovered that there was no legal provision for entrenching women's participation in corporate organization.

 

She noted that the Nigerian Corporate Governance Code 2018 made recommendations for the consideration of gender diversity in the boards of companies.

 

She added that the former Central Bank Governor Mr. Lamido Sanusi Lamido and current one Mr Godwin Emefiele are both strong advocates of gender equity in boards of financial institutions and companies in Nigeria.

 

Women are currently winning at top positions in the banks and professional institutions in Nigeria through professionalism.

 

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Prospects of a Woman in The Top 10 Earning CEOs List

The 2020 and 2021 CEO Remuneration reports revealed that no woman featured in the Top Ten highest-earning CEOs whether at the base salary level or total compensation aspect.

 

Adaeze Nwachukwu said with the emergence of Miriam Olusanya as the CEO of the Guaranty Trust Bank, the narrative could change in 2022. 

 

Leveraging Technology to Minimize Cost, Maximize Profit

A key takeaway is the reality that the COVID 19 pandemic disruption brought to economies and financial market. It has reinforced the need for CEOs to leverage technology, to minimize cost and maximize profits for their companies.

 

This means as technology is adopted to improve services for customers, CEOs will be assessing how it is translating to earnings for the company.

 

The "Hybrid Work Pattern" will be assessed to see if it is leading to productivity for the company and reducing administrative costs.

 

More Nigerians Expected in The Top Ten Highest Paid CEOs (Base Salary)

For the next edition of the CEO Remuneration report, she said the expectation was that more Nigerians will feature in the Top 10 Highest Paid CEOs (Base Salary).

 

From the report there are only two CEOs that made the list for 2021 which are Mr. Ebenezer Onyeagwu, GMD, Zenith Bank and Mr Segun Agbaje GMD, GTCO.

 

She noted that with Mr. Karl Toriola taking over as the CEO of MTN Nigeria and Mr. Segun Ogunsanya also expected to take over from Raghunath Mandava as CEO of Airtel Africa in October, 2o21 the number of Nigerians in the list will increase.


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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

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