The Upside of Rationality

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Wednesday, August 05, 2020 / 07:00 AM / By Proshare Research / Header Image Credit: EcoGraphics


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CEO Remuneration- The Upside of Rationality

How people are paid affects their behaviours at work, which affects an organization's success. For most employers, compensation is a major part of the total cost, and often it is the single largest part of operating cost. These two factors together mean that well-designed compensation systems can help an organization achieve and sustain a competitive advantage. -Milkovich, Newman, and Gerhart

 

There have been serious concerns as regards the basis for which CEO's of companies are remunerated. The debate of CEOs being paid exorbitant sums is not a new one. Investors expect the CEO who is being paid high to perform and prove his worth. Conventionally, the executive compensation has been linked to performance and it was deemed that the high pay for a CEO (for is expertise) was justified. But most often than not, CEOs in Nigeria are paid irrespective of their performances.

 

The argument for heavy salary payments to CEOs of large corporations to keep them happy and encourage them to push harder at corporate growth while improving shareholder returns is becoming increasingly weak. Corporate earnings of CEOs may be tied to the performance of companies, but the relationship is not hard and fast. An interesting detour would be to look at the compensations of Nigeria's ten biggest corporate earners against the sales and profit before tax of their companies in the last four (5) years, the conclusions may not be considered definite, but they may prove to be indicative.

 

MTN/Moolman

MTN PBT/Highest Paid Director's Remuneration

MTN's profit has risen since 2017. Its PBT increased by +31.1%, rising from N221.34m in 2018 to N290.1m in 2019. Moolman generated N495.11 for every one naira of remuneration in 2019. This was +27.94% higher than N387 and +38.68% higher than N357 generated for every one naira of his remuneration in the year 2017 and 2018 respectively (see Chart 13).

 

Chart 13: MTN PBT/ Highest Paid Director's Remuneration

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Source: MTN Audited Account, Proshare Research

 

MTN Revenue/Highest-Paid Director's Remuneration

MTN's revenue has increased remarkably in the last three years, its revenue rose from N887bn in 2017 to N1.17trn in 2019. Its revenue rose by +12.6% in 2019, it increased from N1.04trn in 2018 to N1.17trn in 2019. Moolman generated N1,996.34 in revenue for every one naira of his remuneration in 2019, which was an improvement from N1,819.82 in revenue generated by Moolman in 2018 (Chart 14).

 

Chart 14: MTN Revenue/Highest-Paid Director's Remuneration

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Source: MTN Audited Account, Proshare Research

 

MTN Highest-Paid Director's Remuneration Vs PBT

There has been a steady growth in the annual remuneration paid to MTN's CEO as well as growth in the company's PBT. The consistent growth in MTN's PBT justifies the growth in Moolman's remuneration from N571m in 2018 to N585.94m in 2019. While its profit grew by +31.06% in 2019, its CEO's annual remuneration grew by +2.61% in 2019 (see Chart 15).

 

Chart 15: MTN Highest-Paid Director's Remuneration (N'm) Vs PBT 2017-2019 (N'm)

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Source: MTN Audited Account, Proshare Research 


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MTN's Highest-Paid Director Vs Revenue

MTN's yearly revenue, as well as the remuneration paid to its CEO, increased consistently from 2017 to 2019. MTN's revenue and the amount paid to its CEO moved in the same direction from 2017 to 2019. In 2019, its CEO remuneration rose by +2.61% while its revenue increased by +12.56% (see Chart 16).

 

Chart 16: MTN Highest-Paid Director (N'm) Vs Revenue (N'm)

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MTN Staff Cost

MTN staff cost increased by +13.11% in 2019. Its staff cost rose from N27.15bn in 2018 to N30.71bn in 2019. The increase in staff cost suggests that there has either been a rise in the number of staff employed or existing staff salaries have been raised. Either way, this implies that MTN is investing in its human capital (see Chart 17).

 

Chart 17: MTN Staff Cost (N'm) 2017-2019

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Source: MTN Audited Account, Proshare Research

 

MTN Staff Cost Vs PBT

There was a positive relationship between MTN's staff cost and its PBT from 2017 to 2019. Its staff cost and PBT both moved in the same direction. In 2019, its staff cost increased by +13.11%, increasing from N27.15bn in 2018 to N30.71bn in 2019. In the same vein, its PBT grew by +31.06%, increasing from N221.34m in 2018 to N290.10 in 2019 (see Chart 18).

 

Chart 18: MTN Staff Cost (N'm) Vs PBT (N'm)

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Source: MTN Audited Account, Proshare Research


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MTN Staff Cost Vs Revenue

MTN's staff cost and revenue moved in the same direction from 2017 to 2019. Its staff cost trended upwards from 2017 to 2019, its revenue also witnessed significant growth from 2017 to 2019. In 2019, MTN's revenue grew by +12.57% while its staff cost rose by +13.11% (see Chart 19).

 

Chart 19: MTN Staff Cost (N'm) Vs Revenue (N'm)

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Source: MTN Audited Account, Proshare Research 

 

MTN Staff Cost Vs Highest-Paid Director's Remuneration

MTN staff cost and CEO remuneration both had upward trends between 2017 and 2019.  In 2018, MTN's CEO remuneration grew by +89.1% while staff cost grew by +19.7%.


Its staff cost by +13.1% in 2019 while its CEO remuneration grew at a slow rate of +2.6% (see Chart 20).

 

Chart 20: MTN Staff Cost (N'm) Vs Highest-Paid Director's Remuneration (N'm)

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Source: MTN Audited Account, Proshare Research 


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Oando/Wale Tinubu

Oando Revenue/Highest Paid Director's Remuneration

As of the time of this report, Oando's 2019 result was yet to be released.  Tinubu did better on the revenue side rather than the profit side of the business. Tinubu was able to generate N798 as corporate revenue for every one naira of his remuneration in 2015. Corporate revenue grew to N1,415 for every one naira of Tinubu's pay in 2016 and climbed further to N1,463 of revenue to everyone one naira of executive compensation in 2017. Tinubu's revenue to pay performance was less impressive in 2018, as the revenue generated for every one naira paid to the CEO declined by -15.5% to N1,196 (see Chart 21).

 

Chart 21: Oando Revenue/Highest Paid Director's Remuneration

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Source: Oando Audited Account, Proshare Research

 

Oando's PBT/Highest Paid Director's Remuneration

Oando's profit or loss adjusted for the highest-paid director's income was negative from 2015 to 2016 but turned positive in 2017. In 2017, Tinubu generated N61 as profit for every one naira he earned annually. In 2018, Tinubu generated lesser profit as the profit he generated for every one naira he was remunerated declined to N19.7 (see Chart 22).

 

Chart 22: PBT/Highest Paid Director's Remuneration

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Source: Oando Audited Account, Proshare Research

 

Oando Highest-Paid Director's Remuneration Vs PBT

The annual remuneration received by Oando's CEO has risen steadily from 2015 to 2018 despite a decline or an increase in the company's profit before tax. In 2016, Oando's losses incurred for the year increased from N39.11bn in 2015 to N63.38bn in 2016 while the amount paid to its CEO increased from N255m in 2015 to N322m in 2016.

 

In 2018, Oando's CEO remuneration increased by +67.06% while it recorded a decline in its profit by -46.12%. This implies basically that Oando's CEO is not remunerated based on the growth of PBT (see Chart 23).

 

Chart 23: Oando Highest-Paid Director (N'm) Vs PBT (N'm)

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Source: Oando Audited Account, Proshare Research


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Oando Highest-Paid Director's Remuneration Vs Revenue

Remuneration received by Oando's CEO moved in the same direction with revenue generated between 2015 and 2018. When its revenue grew significantly by +124.03% in 2015, the remuneration of its CEO also rose by +26.27%.

 

While in 2017, its revenue increased by +9.14%, and its CEO equally increased by +5.59% (see Chart 24).

 

Chart 24: Oando Highest-Paid Director's Remuneration (N'm) Vs Revenue (N'm)

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Source: Oando Audited Account, Proshare Research

 

Oando's Staff Cost

Oando's staff cost has declined since 2015 despite growth in its revenue; staff cost fell from N13.2bn in 2015 to N9.5bn in 2016 and N6.96bn in 2017 (staff cost fell -47.7% over three years). The decline could have been the result of divestments that occurred during the period. In 2018, staff cost rebounded to N11.03bn, the first increase in four years. The decline in staff cost resulted from either a decline in staff numbers or a reduction in staff pay over the period. What is obvious is that as staff cost declined, the CEO's remuneration went up (see Chart 25).

 

Chart 25: Oando Staff Remuneration (N'bn) 2015-2018

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Source: Oando Audited Account, Proshare Research


Oando Staff Remuneration Vs PBT

Oando's staff remuneration did not align with the movements in the profit of the company. In 2017, there was a remarkable growth in its profit to N20.77bn from a loss of N63.38bn. Despite the remarkable growth in its profit, staff remuneration declined to N6.9bn in 2017 from 9.5bn in 2018.

 

While in 2018, Oando recorded a decline in its profit to N11.19bn from N20.77bn in 2017. In contrast to the movement in profit, there was an increase in staff cost to N11bn in 2018 from N6.9bn in 2017 (see Chart 26).

 

Chart 26: Oando Staff Remuneration (N'bn) Vs PBT (N'm)

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Source: Oando Audited Account, Proshare Research

 

Oando Staff Remuneration Vs Revenue

While its revenue grew consistently from 2015 to 2018, its staff remuneration fluctuated. Its staff remuneration declined consistently in 2016 and 2017 before rising remarkably to N11bn in 2018 (see Chart 27).

 

Chart 27: Oando Staff Remuneration (N'bn) Vs Revenue (N'bn)

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Source: Oando Audited Account, Proshare Research 

 

Oando Staff Remuneration Vs Highest-Paid Director's Remuneration

Oando's CEO remuneration rose consistently from 2015 to 2018, while its staff remuneration fluctuated during the same period. In 2018, staff remuneration increased by +59.4% while its CEO remuneration rose by +67.1% (see Chart 28).

 

Chart 28: Oando Staff Remuneration (N'bn) Vs Highest-Paid Director's Remuneration (N'm)

 

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Source: Oando Audited Account, Proshare Research


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Seplat Petroleum Development Company/Augustine Avuru

 

Seplat PBT/ Highest-Paid Director's Remuneration

Seplat's PBT to highest-paid director's remuneration recorded an upturn in 2016 and has since been rising consistently. Its PBT to highest-paid director's remuneration rose from N166.87 in 2018 to N204.35 in 2019. The statistic implies that for every one naira paid to Avuru, he was able to generate N204.35 in 2019 (see Chart 29).

 

Chart 29: Seplat PBT/Highest-Paid Director's Remuneration

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Source: Seplat Plc Audited Accounts, Proshare Research

 

Seplat Revenue/Highest-Paid Director's Remuneration

Seplat's revenue to its CEO's remuneration has risen consistently since dropping in 2016.  The highest increase of +85.62% in revenue to remuneration paid to Avuru was recorded in 2017. In 2019, Avuru was able to generate N486.72 for every one naira he received as remuneration (see Chart 30).

 

Chart 30: Seplat PBT/Highest-Paid Director's Remuneration

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Source: Seplat Plc Audited Accounts, Proshare Research

 

Seplat Highest-Paid Director's Remuneration Vs PBT

A cursory comparison of Seplat's PBT and CEO remuneration from 2015 to 2019 reveals a fall in its PBT from N112.97bn in 2015 to N89.91bn in 2019 while its CEO annual remuneration rose from N326m in 2015 to N440m in 2019.

 

Its PBT and annual remuneration to the CEO moved in opposite directions in 2016 and 2019 respectively. Despite the loss of N47.42bn Seplat recorded in 2016, its CEO annual remuneration rose from N326m in 2015 to N405m.

 

In 2019, its PBT rose from N80.6bn in 2018 to N89.9bn in 2019. While the remuneration to the highest-paid director declined from N483m in 2018 to N440m in 2019 (see Chart 31).

 

Chart 31: Seplat PBT (N'm) Vs Highest-Paid Director's Remuneration (N'm)

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Source: Seplat Plc Audited Accounts, Proshare Research

 

Seplat Highest-Paid Director's Remuneration Vs Revenue

Seplat's CEO's remuneration moved in the same direction with the growth in revenue from 2016 to 2019. In 2017, its revenue rose to N138.28bn from N63.38bn in 2016. Its CEO remuneration moved in the same direction, increasing from N405m in 2016 to N476m in 2017.

 

While in 2019, Seplat recorded a slight decline in revenue and the remuneration paid to its CEO. Its revenue declined from N228.39bn in 2018 to N214.16bn in 2019 while its CEO remuneration also declined to N440m in 2019 from N483m in 2018 (see Chart 32).

 

Chart 32: Seplat Revenue (N'm) Vs Highest-Paid Director's Remuneration (N'm)

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Source: Seplat Plc Audited Accounts, Proshare Research

 

Seplat Staff Cost

Seplat's staff cost fell to N5.02bn in 2017, when management needed to cut the cost to accommodate recession fears. Seplat's staff cost has increased consistently from 2017 to 2019. Increasing from N5.02bn in 2017 to N7.02bn in 2019 still below the peak in staff cost of N9.33bn recorded in 2016 (see Chart 33).

 

Chart 33: Seplat Staff Cost (N'bn) 2015-2019

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Source: Seplat Plc Audited Accounts, Proshare Research 

 

Seplat Staff Cost Vs PBT

Seplat's PBT and staff cost moved in the same direction from 2017 till 2019. In 2018, Seplat's PBT increased remarkably by +499.07%. Its PBT rose from N13.45bn in 2017 to N80.6bn in 2018 while its staff grew by +20.27% increasing from N5.02bn in 2017 to N6.04bn in 2018 (see Chart 34).

 

Chart 34: Seplat Staff Cost (N'm) Vs PBT (N'm)

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Source: Seplat Plc Audited Accounts, Proshare Research

 

Seplat Staff Cost Vs Revenue

Seplat's staff cost does not align with movement in its revenue. Its revenue and staff cost moved in opposite directions in 2016, 2017, and 2019. In 2016, its revenue declined to N63.38bn from N112.97bn while its staff cost increased to N9.33bn in 2016 from N3.77bn in 2015.

 

Also, in 2019 its revenue declined to N214.16bn from N228.39bn in 2019 while staff cost increased from N6.04bn in 2018 to N7.02bn in 2019 (see Chart 35).

 

Chart 35: Seplat Staff Cost (N'm) Vs Revenue (N'm)

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Source: Seplat Plc Audited Accounts, Proshare Research

 

Seplat Staff Cost Vs Highest-Paid Director's Remuneration

Seplat's staff cost and its CEO's Remuneration ran in the same direction only in 2016 and 2018 while they moved in opposite direction between 2017 and 2019.

 

In 2016, Seplat's staff cost increased by +147.53% while its CEO remuneration increased by +24.23%. The narrative was different in 2019, as the CEO's remuneration declined by -8.9% while staff cost increased by +16.16% (see Chart 36).

 

Chart 36: Seplat Staff Cost (N'm) Vs Highest-Paid Director's Remuneration (N'm)

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Source: Seplat Plc Audited Accounts, Proshare Research


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GTBank/Agbaje

GTBank is easily one of the most recognizable banking franchise in Nigeria. The bank has consistently sustained one of the highest returns on equity in the sector.

 

GT Bank PBT/Highest-Paid Director's Remuneration

Segun Agbaje's post-recession remuneration increased significantly. His remuneration increased from N204.99m in 2015 to N399.7m in 2019 or +18.17% on a compound annual basis. It should be noted that the bank has consistently recorded growth in profit from 2015 to date. The rapid growth rate in its CEO's Remuneration dragged down the bank's PBT to remuneration paid to its CEO from N893.30 in 2017 to N579.7 in 2019. The implication is that Agbaje generated a profit of N579.70 for every one naira he received as remuneration (see Chart 37).

 

Chart 37: GT Bank PBT/Highest-Paid Director's Remuneration

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Source: GT Bank Audited Annual Accounts

 

GT Bank Revenue/Highest-Paid Director's Remuneration

GTBank's revenue, as well as its CEO remuneration, increased consistently from 2015 to 2019. But the growth in its CEO remuneration in most recent times outweighed the growth in revenue.


In 2018, GT Bank's CEO remuneration grew by +71.38% while its gross earnings grew slightly by +3.69%. In the same vein, its CEO remuneration grew by +4.05% in 2019 while its gross earnings grew slower by +0.14% compared to the previous year (see Chart 38).

 

Chart 38: GT Bank Revenue/Highest-Paid Director's Remuneration

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Source: GT Bank Audited Annual Accounts

 

GT Bank Highest-Paid Director's Remuneration Vs PBT

GTBank's PBT and the amount paid to its CEO increased between 2015 and 2019. GTBank's PBT increased from N120.7bn in 2015 to N231.71bn in 2019 while the remuneration paid to its CEO increased from N204.99m in 2015 to N399.7m in 2019. GT Bank's CEO's remuneration, as well as PBT, moved in the same direction (see Chart 39).

 

Chart 39: GT Bank PBT (N'm) Vs Highest-Paid Director's Remuneration (N'm)

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Source: GT Bank Audited Annual Accounts

 

GTBank Highest-Paid Director's Remuneration Vs Revenue

GTBank's highest-paid director's remuneration and its revenue showed a strong positive correlation from 2015 to 2019. Although, in 2018 and 2019 its CEO annual remuneration recorded a faster-paced growth rate (see Chart 40).

 

Chart 40: GT Bank Highest-Paid Director's Remuneration (N'm) Vs Gross Earnings (N'm)

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Source: GT Bank Audited Annual Accounts


GT Bank Staff Cost

GTBank staff cost rose from 2015 to 2017. The growth in staff remuneration halted in 2018 before rising slightly again in 2019. GT Bank's staff cost increased from N27.71bn in 2015 to N33.39bn in 2019 (see Chart 41).

 

Chart 41: GT Bank Staff Cost (N'm)

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Source: GT Bank Audited Annual Accounts

 

GTBank Staff Cost Vs PBT

There was no clear relationship between the movement in GTBank's PBT and its staff cost. In 2018, GTBank's PBT increased from N200.24bn in 2017 to N215.59bn while in contrast, its staff cost declined to N32.83bn in 2018 from N36.86bn in 2017 (see Chart 42).

 

Chart 42: GT Bank Staff Cost (N'm) Vs PBT (N'm)

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Source: GT Bank Audited Annual Accounts


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GT Bank Staff Cost (N'm) Vs Revenue (N'm)

There was also no clear relationship between the movement in GTBank's gross earnings and its staff cost. GT Bank's revenue rose from N419.23bn in 2017 to N434.7bn in 2018 while its staff cost declined from N36.86bn in 2017 to N32.83bn in 2018 (see Chart 43).

 

Chart 43: GT Bank Staff Cost (N'm) Vs Gross Earnings (N'm)

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Source: GT Bank Audited Annual Accounts

 

GT Bank Staff Cost Vs Highest-Paid Director's Remuneration

GTBank's CEO's remuneration rose from 2015 to 2019, while staff cost grew faster until 2018. In 2018, GT Bank's CEO remuneration rose by +71.4% while staff cost dipped by -10.9%.

 

In 2019, staff cost recorded an upturn as there was an increase in staff cost by +1.72%. While the fast-paced growth in CEO remuneration was lax in 2019. Its CEO remuneration also grew slightly by 4.05% (see Chart 44).

 

Chart 44: GT Bank Highest-Paid Director's Remuneration (N'm) Vs Staff Cost (N'm)

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Source: GT Bank Audited Annual Accounts

 

Unilever/Yaw Nsarkoh

Unilever PBT/ Highest-Paid Director's Remuneration

Unilever's PBT declined from N1.77bn in 2015 to a loss of N10.07bn in 2019 while its CEO remuneration increased from N154m in 2015 to N302.52m in 2019.

 

Unilever's PBT to remuneration paid to its CEO has consistently declined from 2017 to 2019. In 2018, its CEO generated a profit of N38.25 for every one naira he received as remuneration. The amount generated in profit by its CEO further worsened in 2019. For every one-naira Nsarkoh received as remuneration, a loss of N33.29 was incurred (see Chart 45)

 

Chart 45: Unilever PBT/Remuneration Paid to Nsarkoh 2015-2019

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Source: Unilever Nigeria Plc Audited Annual Accounts

 

Unilever Revenue/Remuneration Paid to Nsarkoh 2015-2019

Unilever's revenue to remuneration paid to its CEO declined from 2017 to 2019. In 2018, its CEO generated revenue of N281.52 for every one naira he received as remuneration.  Revenue generated by its CEO further worsened in 2019. For every one-naira, Nsarkoh received as remuneration a revenue of N199.94 was generated (see Chart 46).

 

Chart 46: Unilever Revenue/Highest-Paid Director's Remuneration

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Source: Unilever Nigeria Plc Audited Annual Accounts

 

Unilever Highest-Paid Director's Remuneration Vs PBT

Unilever's PBT and the remuneration paid to its CEO moved in the same direction. An increase in its PBT was consistently followed by an increase in its CEO remuneration while a decline in its PBT was also matched with a decline in the remuneration paid to its CEO. From 2015 to 2018, Unilever's PBT as well as its CEO remuneration increased in the same direction.

 

Unilever recorded a loss of N10.07bn in 2019 as well as a decline in its CEO remuneration. The amount paid to its CEO declined from N330m in 2018 to N302.52m in 2019 (see Chart 47).

 

Chart 47: Unilever Highest-Paid Director's Remuneration (N'm) Vs PBT (N'm)

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Source: Unilever Nigeria Plc Audited Annual Accounts

 

Unilever Highest-Paid Director's Remuneration Vs Revenue

The amount paid to Unilever's CEO trailed its revenue. An increase in its revenue was followed by an increase in its CEO remuneration while a decline in its revenue was also matched with a decline in the remuneration paid to its CEO.  From 2015 to 2018, Unilever's revenue, as well as its CEO remuneration, rose in the same direction.

 

Unilever's revenue declined to N60.49bn in 2019, its CEO remuneration also declined to N302.52 in the same vein (see Chart 48).

 

Chart 48: Unilever Highest-Paid Director's Remuneration (N'm) Vs Revenue (N'm)

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Source: Unilever Nigeria Plc Audited Annual Accounts

 

Unilever Staff Cost

Unilever's staff cost rose consistently from 2016 to 2019.  Its staff cost increased from N6.96bn in 2015 to N10.64bn in 2019 (see Chart 49).

 

Chart 49: Unilever Staff Cost (N'm)

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Source: Unilever Nigeria Plc Audited Annual Accounts 

 

Unilever Staff Cost Vs Revenue

There was no clear alignment between Unilever's staff cost and its revenue. In 2016, there was an increase in Unilever's annual revenue by +17.82%. Its revenue increased from N59.22bn in 2015 to N69.78bn in 2016 while its staff cost grew negatively by -3.06%. Its staff cost declined marginally from N6.96bn in 2015 to N6.75bn in 2016.

 

In 2019, Unilever's revenue declined to N60.49bn from N92.9bn in 2018 while its staff cost increased by +9.21%. Its staff cost increased to N10.64bn in 2019 from N9.74bn in 2018 (see Chart 50).

 

Chart 50: Unilever Staff Cost (N'm) Vs Revenue (N'm)

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Source: Unilever Nigeria Plc Audited Annual Accounts

 

Unilever Staff Cost Vs PBT

Unilever's staff cost and its PBT do not move in the same direction. Its PBT and staff cost moved in the opposite direction in 2019. While its staff cost grew by +9.21%, it recorded a loss of N10.64bn (see Chart 51).

 

Chart 51: Unilever Staff Cost (N'm) Vs PBT (N'm)

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Source: Unilever Nigeria Plc Audited Annual Accounts

 

Unilever Highest-Paid Director's Remuneration Vs Unilever Staff Cost

The amount paid to Unilever's CEO rose consistently from 2015 till 2018 but declined to N302.52m in 2019.  On the other hand, its staff cost declined in 2016 and has since been on an upward momentum.


In 2019, Unilever’s staff cost grew by +9.21% while its CEO remuneration moved in the opposite direction as it grew negatively by -8.33% (see Chart 52).

 

Chart 52: Unilever Highest-Paid Director's Remuneration (N'm) Vs Staff Cost (N'm)

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Source: Unilever Nigeria Plc Audited Annual Accounts 


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Lafarge Africa/Michel Purhercos

Lafarge PBT/ Highest-Paid Director's Remuneration

Lafarge's PBT to remuneration paid to its CEO was negative from 2015 to 2018 before reversing in 2019. The highest negative ratio was recorded in 2017. 

 

In 2018, a loss of N4.84 was incurred for every one naira that was paid to its CEO. In 2019, there was a turnaround, as Purhercos was able to generate a profit of N63.36 for every one naira he received as CEO (see Chart 53).

 

Chart 53: Lafarge PBT/ Highest-Paid Director's Remuneration

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts

 

Lafarge Revenue/ Highest-Paid Director's Remuneration

Lafarge's revenue to remuneration paid to its CEO fluctuated between 2016 and 2019. The amount rose in 2017 before dipping in 2018 and regaining its momentum in 2019.

 

In 2019, there was an increase in the revenue generated for every one naira paid to Purhercos. Purhercos was able to increase the revenue he generates for every one naira he receives from N698.12 in 2018 to N754.30 in 2019 (see Chart 54).

 

Chart 54: Lafarge Revenue/Highest Paid Director's Remuneration

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts

 

Lafarge Highest-Paid Director's Remuneration Vs PBT

Data from Lafarge's financials suggest that there might be other factors aside from the growth in PBT that determines the pay of its CEO.

 

Despite consistently recording losses from 2016 to 2018, there was an increase in annual remuneration received by its CEO. The amount paid to its CEO grew by +30% in 2018 from 2016.

 

Lafarge was able to upturn its losses, as its profit grew remarkable by +1,285.10% in 2019. It was able to make a profit of N17.89bn after consistently recording losses from 2016 to 2018. Despite the upturn in its profit, the amount paid to its CEO grew negatively by -9.49% in 2019 (see Chart 55).

 

Chart 55: Lafarge Highest-Paid Director's Remuneration (N'm) Vs PBT (N'm)

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts

 

Lafarge Highest-Paid Director's Remuneration Vs Revenue

There seems to be a somewhat type of relationship between Lafarge's revenue and the annual remuneration received by its CEO.  Its revenue and the remuneration received by its CEO moved in the same direction from 2016 to 2019 except 2018 when they both recorded opposite movements.

 

In 2018, Lafarge's revenue declined from N299.15bn to N217.81bn while its CEO's remuneration recorded a growth of +20.93% (see Chart 56).

 

Chart 56: Lafarge Highest-Paid Director's Remuneration (N'm) Vs Lafarge Revenue (N'm)

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts

 

Lafarge Staff Cost

Lafarge's staff cost rose consistently from 2016 to 2018 before dipping remarkable by -49.29% in 2019. A plausible reason for the reduction in staff cost could be attributed to the need to reduce its operational cost and the need to increase its profitability.

 

In 2019, Lafarge staff cost grew negatively by -49.29%, as its staff cost declined from N37.16bn in 2018 to N18.85bn in 2019 (see Chart 57).

 

Chart 57: Lafarge Staff Cost (N'm)

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts 

 

Lafarge Staff Cost Vs PBT

Lafarge's staff cost and PBT moved in the opposite direction from 2016 to 2018. Despite the loss it incurred during this period, there was an increase in its staff cost.

 

The upturn in its profitability status was not accompanied by an increase in its staff cost. Instead, its staff cost declined significantly to N18.85bn (see Chart 58).

 

Chart 58: Lafarge Staff Cost (N'm) Vs Lafarge PBT (N'm)

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts

 

Lafarge Staff Cost Vs Revenue

Lafarge staff cost and its revenue showed a strong positive correlation from 2016 to 2019 except the year 2018 where they moved in the opposite direction. In 2018, Lafarge's revenue grew negatively by -27.19%while its staff cost recorded positive growth of +13.72%.

 

The positive relationship between these variables was restored in 2019, as both its revenue and staff cost declined. Revenue declined slightly by -2.21% while its staff cost declined significantly by -49.29% (see Chart 59).

 

Chart 59: Lafarge Staff Cost (N'm) Vs Lafarge Revenue (N'm)

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts

 

Lafarge Highest-Paid Director's Remuneration Vs Staff Cost

Lafarge's staff cost mirrored out the trends in its CEO remuneration. From 2016 to 2018, both its staff cost and CEO remuneration recorded increases respectively.

 

In 2019, Lafarge recorded a decline both in its staff cost and the remuneration of its CEO.  Its staff cost decline significantly by -49.29% while its CEO annual remuneration declined grew negatively by -9.49% (see Chart 60).

 

Chart 60: Lafarge Highest-Paid Director's Remuneration (N'm) Vs Staff Cost (N'm)

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Source: Lafarge Africa Nigeria Plc Audited Annual Accounts

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Nigerian Breweries Plc

 

Nigerian Breweries PBT/Highest-Paid Director's Remuneration

The amount of profit generated by Nigerian Breweries' highest-paid director for every one naira he received as remuneration was irregular from 2016 to 2019, rising and falling in different years.


In 2019, Bel generated revenue of N146.5 for every one naira he received as remuneration (see Chart 61).

 

Chart 61: Nigerian Breweries PBT/Highest-Paid Director's Remuneration

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Source: Nigerian Breweries Plc Audited Annual Accounts

 

Nigerian Breweries Revenue/Highest-Paid Director's Remuneration

The amount of revenue generated by Nigerian Breweries' highest-paid director for every one naira he received as remuneration was irregular from 2016 to 2019, rising and falling in different years.


In 2019, revenue generated by Bel for every one naira he received as remuneration declined to N1,159.68 from N1,809 in the previous year (see Chart 62).

 

Chart 62: Nigerian Breweries Revenue/Highest-Paid Director's Remuneration

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Source: Nigerian Breweries Plc Audited Annual Accounts

 

Nigerian Breweries Highest-Paid Director's Remuneration Vs PBT

Nigerian Breweries PBT and its highest-paid director's remuneration did not trend in the same direction. They both moved in opposite directions in 2018 and 2019.

 

In 2018, its PBT rose to N46.57bn from N29.36bn in 2017 while its highest-paid director's remuneration declined significantly to N190.47bn in 2018 from N340.2bn in 2017.

 

Despite the reduction in its PBT to N39.62bn in 2019, its CEO's remuneration rose to N270.54m from N190.47m in 2018 (see Chart 63)

 

Chart 63: Nigerian Breweries Highest-Paid Director's Remuneration (N'm) Vs PBT (N'bn)

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Source: Nigerian Breweries Plc Audited Annual Accounts

 

Nigerian Breweries Staff Cost

Nigerian Breweries staff cost declined by -6.04% in 2019. Its staff cost declined to N39.84bn in 2019 from N42.4bn in 2018 (see Chart 64).

 

Chart 64: Nigerian Breweries Staff Cost (N'bn)

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Source: Nigerian Breweries Plc Audited Annual Accounts 

 

Nigerian Breweries Plc Staff Cost Vs PBT

Nigerian Breweries staff cost moved in the same direction with its PBT generated. Years in which PBT reduced there was consequently a reduction in staff cost while in years when PBT increased, the staff cost also rose in the same direction.

 

PBT reduced to N39.62bn in 2019 from N46.57bn in 2018 while its staff cost declined in the same direction from N39.84bn in 2019 from N42.4bn in 2018 (see Chart 65).

 

Chart 65: Nigerian Breweries Plc Staff Cost (N'bn) Vs PBT (N'bn)

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Source: Nigerian Breweries Plc Audited Annual Accounts

 

Nigerian Breweries Plc Highest-Paid Director's Remuneration Vs Staff Cost

There was no clear relationship between Nigerian Breweries staff cost and its CEO remuneration. The variables moved in the same direction in some years while in other years they moved in different directions.

 

In 2019, while its CEO remuneration increased to N270.54m from N190.47m in 2018, its staff cost declined to N39.84bn from N42.4bn in 2018 (see Chart 66).

 

Chart 66: Nigerian Breweries Plc Highest-Paid Director's Remuneration (N'm) Vs Staff Cost (N'bn)

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Source: Nigerian Breweries Plc Audited Annual Accounts

 

Nestle Nigeria Plc/Mauricio Alarcon

 

Nestle Nigeria Plc PBT/Highest-Paid Director's Remuneration

Nestle's PBT to its highest-paid director's remuneration declined consistently from 2015 to 2017 and upturned into an upward trajectory from 2018 to 2019. In 2018, Nestle's CEO generated a PBT of N283.88 for every one-naira remuneration he received.

 

In 2019, Nestle's ratio of PBT to its CEO remuneration improved. Alarcon generated a PBT of N326.14 for every one-naira he received as remuneration (see Chart 67).

 

Chart 67: Nestle Plc PBT/Highest-Paid Director's Remuneration

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Source: Nestle Nigeria Plc Audited Annual Accounts

 

Nestle Nigeria Plc Revenue/ Highest-Paid Director's Remuneration

 

Nestle's revenue to remuneration paid to its CEO declined steadily from 2015 to 2018 before rising slightly in 2019.

 

In 2019, Alarcon was able to generate a revenue of N1,302.44 for every one-naira he received as remuneration (see Chart 68).

 

Chart 68: Nestle Plc Revenue/Highest Paid Director's Remuneration

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Source: Nestle Nigeria Plc Audited Annual Accounts

 

Nestle Plc Highest-Paid Director's Remuneration Vs PBT

Nestle's CEO's remuneration and its PBT moved in the same direction from 2016 to 2019. They were closely knitted. In 2018, its CEO remuneration grew by +27.59% while its PBT also grew positively by +24.09%.


Likewise, in 2019 Nestle's PBT grew remarkable to N71.12bn while its CEO remuneration grew slowly by +3.61% (see Chart 69).

 

Chart 69: Nestle Plc Highest-Paid Director's Remuneration (N'm) Vs PBT (N'm)

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Source: Nestle Nigeria Plc Audited Annual Accounts 

 

Nestle Plc Highest-Paid Director's Remuneration Vs Revenue

Nestle's CEO's remuneration had a positive relationship with the growth in its revenue. It's CEO remuneration and revenue both grew positively from 2015 to 2019. In 2019, its revenue grew by +6.67% while its CEO remuneration also recorded a growth of +3.61% (see Chart 70).

 

Chart 70:  Nestle Plc Highest-Paid Director's Remuneration (N'm) Vs Revenue (N'm)

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Source: Nestle Nigeria Plc Audited Annual Accounts

 

Nestle Staff Cost

Nestle staff cost recorded a consistent rise from 2015 to 2019. In 2019, Nestle's staff cost rose by +10.34%. Its staff cost rose from N23.51bn in 2018 to N25.94bn in 2019 (see Chart 71).

 

Chart 71: Nestle Staff Cost (N'm)

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Source: Nestle Nigeria Plc Audited Annual Accounts

 

Nestle Staff Remuneration Vs Revenue

Nestle's growth in revenue moved in the same direction as its staff remuneration. Both its staff cost and revenue grew positively from 2015 to 2019.

 

In 2019, Nestle remuneration grew by +6.67% while its staff cost growth of +10.34% was more than the growth in its revenue (see Chart 72).

 

Chart 72: Nestle Staff Remuneration (N'm) Vs Revenue (N'm)

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Source: Nestle Nigeria Plc Audited Annual Accounts 

 

Nestle Staff Remuneration Vs PBT

Nestle's staff remuneration trended in the same direction with movement in its PBT. Its staff remuneration and its PBT recorded positive growth from 2015 to 2019.

 

In 2019, Nestles recorded a growth in its PBT by +19.03%, its PBT increased from N59.75bn in 2018 to N71.12bn in 2019. In the same vein, it increased its staff cost by +10.34%. Its staff cost increased from N23.51bn in 2018 to N25.94bn in 2019 (see Chart 73).

 

Chart 73: Nestle Staff Remuneration (N'm) Vs PBT (N'm)

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Source: Nestle Nigeria Plc Audited Annual Accounts

 

Nestle Highest-Paid Director's Remuneration  Vs Staff Cost

Nestle has made a significant investment in its staff strength. Its investment in its staff numbers has been justified by the consistent growth in its profit from 2015 to 2019.

 

Its CEO remuneration and staff remuneration recorded positive growths from 2015 to 2019. This implies that Nestle Plc understands the importance of investing in its staff's strength. In 2019, its staff cost grew by +10.34% while its CEO remuneration grew by +3.61%. Staff cost increased from N23.51bn in 2018 to N25.94bn in 2019, while its CEO remuneration increased from N210.48m in 2018 to N218.08m in 2019 (see Chart 74).

 

Chart 74: Nestle Plc Highest-Paid Director's Remuneration (N'm) Vs Staff Cost (N'm)

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Source: Nestle Nigeria Plc Audited Annual Accounts

 

Julius Berger/Engr. Dr. Lars Richter

Julius Berger's PBT/Highest Paid Director's Remuneration

Profit generated by Julius Berger's CEO increased consistently from 2016 to 2019. The amount paid to its CEO increased consistently from 2015 to 2018 before a slow dip in 2019. While its PBT increased from 2016 to 2019.

 

Dr. Lars Richter who took over as the company's CEO in 2019, generated a PBT of N64.12 for every one-naira he received as his annual remuneration (see Chart 75).

 

Chart 75: Julius Berger PBT/Highest Paid Director's Remuneration

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Source: Julius Berger Plc Audited Annual Accounts 

 

Julius Berger Revenue/Highest Paid Director's Remuneration

The revenue generated by Julius Berger's CEO rose remarkably to N1,227.39 in 2019 from N610.51 in 2018.  For every one-naira received as remuneration by Richter, he was able to generate a revenue of N1,227.39 (see Chart 76).

 

Chart 76: Julius Berger Revenue/Highest Paid Director's Remuneration

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Source: Julius Berger Plc Audited Annual Accounts

 

Julius Berger Highest-Paid Director's Remuneration Vs PBT

Julius Berger's PBT has increased continuously from 2016 to 2019 while its CEO remuneration maintained an upward trajectory from 2015 to 2018 before dipping slightly by -31.91% in 2019.

 

In 2019, Julius Berger's PBT moved in the opposite direction with CEO remuneration. While its PBT rose from N10.19bn in 2018 to N13.92bn in 2019 its remuneration paid to its CEO declined from N319m in 2018 to N217m in 2019 (see Chart 77).

 

Chart 77: Julius Berger Highest-Paid Director's Remuneration (N'm) Vs PBT (N'm)

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Source: Julius Berger Plc Audited Annual Accounts

 

Julius Berger Highest-Paid Director's Remuneration Vs Revenue

Julius Berger's CEO's remuneration and revenue moved in the same direction from 2015 to 2018 before drifting in the opposite direction in 2019.

 

Julius Bergers CEO remuneration declined by -31.91% in 2019 while its revenue grew by +36.90% (see Chart 78).

 

Chart 78: Julius Berger Highest-Paid Director's Remuneration (N'm) Vs Revenue (N'm)

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Source: Julius Berger Plc Audited Annual Accounts

 

Julius Berger Staff Cost

Julius Berger's staff cost maintained an upward trend from 2015 to 2019. Its staff cost grew by +73.75% in 2019 from 2015. Staff cost increased from N41.65bn in 2015 to N72.37bn in 2019.

 

Julius Berger has invested remarkable in its staff cost from 2015 to 2019. This has impacted its profit positively, as it recorded yearly growths in its profit from 2015 to 2019 (see Chart 79).

 

Chart 79: Julius Berger Staff Cost (N'm)

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Source: Julius Berger Plc Audited Annual Accounts 

 

Julius Berger Staff Cost Vs PBT

Julius Berger's staff cost and PBT both moved in the same direction from 2016 to 2019 i.e. they both recorded positive growths from 2016 to 2019.


Its PBT growth outpaced the growth of staff costs in 2019. In 2019, its PBT grew by +36.49% while staff cost grew by +5.24% (see Chart 80).

 

Chart 80: Julius Berger Staff Cost (N'm) Vs PBT (N'm)

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Source: Julius Berger Plc Audited Annual Accounts

 

Julius Berger Staff Cost Vs Revenue

Julius Berger's staff cost and revenue both moved in the same direction from 2016 to 2019. They both recorded positive growths from 2016 to 2019.

 

The relationship between its staff cost and revenue mirrored out the relationship between staff cost and PBT. Its revenue growth outpaced the growth of staff costs in 2019. In 2019, its revenue grew by +36.9% while staff cost grew by +5.24% (see Chart 81).

 

Chart 81: Julius Berger Staff Cost (N'm) Vs Revenue (N'm)

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Source: Julius Berger Plc Audited Annual Accounts

 

Julius Berger Highest-Paid Director's Remuneration Vs Staff Cost

Julius Berger's staff cost and its CEO remuneration both grew positively from 2016 to 2018 and drifted in opposite directions in 2019.

 

In 2019, while its staff cost grew by +5.24%, its CEO remuneration declined by -31.91% (see Chart 82).

 

Chart 82: Julius Berger Highest-Paid Director's Remuneration (N'm) Vs Staff Cost (N'm)

 

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Source: Julius Berger Plc Audited Annual Accounts

 

Guinness

Guinness PBT/Highest Paid Director's Remuneration

Profit generated for every one-naira paid to the CEO took a nose-dive in 2016, as it was negative. There was a turnaround in 2017, ever since which it has recorded an upward momentum.

 

In 2019, profit generated for every one-naira paid to its CEO increased to N36.80 from N21.57 in 2018 (see Chart 83).

 

Chart 83: Guinness PBT/Highest Paid Director's Remuneration

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Source: Guinness Plc Audited Annual Accounts

 

Guinness Revenue/Highest Paid Director's Remuneration

Generated revenue for every one-naira paid to its CEO fluctuated between 2015 and 2019. It declined in the year 2016 and 2017 while it regained an upward momentum in 2019.

 

In 2019, revenue generated by Guinness Plc CEO rose from N310.14 in 2018 to N681.34 (see Chart 84).

 

Chart 84: Guinness Revenue/Highest Paid Director's Remuneration

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Source: Guinness Plc Audited Annual Accounts

 

Guinness Highest-Paid Director's Remuneration Vs PBT

There was no direct relationship between the annual remuneration paid to Guinness Plc CEO and the growth in its PBT. In some years both PBT and CEO remuneration moved in the same direction while in other years they didn't.

 

In the year 2016, Guinness Plc recorded a loss of N2.35bn while the annual remuneration earned by its CEO increased to N123m from N54m in 2015.

 

While both PBT and CEO remuneration dipped in 2019. Guinness PBT dipped by -28.56% while its CEO's recorded a greater dip of -58.13% (see Chart 85).

 

Chart 85: Guinness Highest-Paid Director's Remuneration (N'm) Vs PBT (N'm)

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Source: Guinness Plc Audited Annual Accounts

 

Guinness Highest-Paid Director's Remuneration Vs Revenue

Guinness Plc's highest-paid director's remuneration moved in the same direction with its revenue generated from 2016 to 2019.

 

Guinness Plc revenue dipped by -8.03% in 2019, declining to N131.5bn from N142.98bn. While its CEO remuneration was significantly reduced by -58.13%, declining to N193m in 2019 from N461m in 2018 (see Chart 86).

 

Chart 86: Guinness Highest-Paid Director's Remuneration (N'm) Vs Revenue (N'm)

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Source: Guinness Plc Audited Annual Accounts

 

Guinness Plc Staff Cost (N'm)

Guinness Plc recorded a continuous reduction in its staff cost from 2015 to 2019. This suggests that Guinness must have embarked on cost-cutting strategies to increase efficiency and profitability.

 

Guinness staff cost declined by -8.65% in 2019. Its staff cost declined from N9.6bn in 2018 to N8.77bn in 2019 (see Chart 87).

 

Chart 87: Guinness Plc Staff Cost (N'm)

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Source: Guinness Plc Audited Annual Accounts

 

Guinness Plc Staff Cost Vs Revenue

No clear relationship between Guinness Plc staff cost and its revenue could be deduced from their financials. Staff cost declined consistently from 2015 to 2019 whilst its revenue fluctuated increasing and decreasing at different years.

 

Both its staff cost and revenue declined in 2019. Guinness staff cost declined by -8.65% while its revenue declined by -8.03% (see Chart 88).

 

Chart 88: Guinness Plc Staff Cost (N'm) Vs Revenue (N'm)

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Source: Guinness Plc Audited Annual Accounts

 

Guinness Plc Staff Cost Vs PBT

Guinness Plc Staff Cost and PBT did not have any clear relationship. While its staff cost declined consistently, its PBT fluctuated at different years.

 

In 2019, both its staff cost and revenue declined. Its staff cost declined by -8.65% and was also followed by a corresponding decline in PBT by -28.56% (see Chart 89).

 

Chart 89: Guinness Plc Staff Cost (N'm) Vs PBT(N'm)

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Source: Guinness Plc Audited Annual Accounts

 

Guinness Plc CEO Remuneration Vs Staff Cost

Guinness Plc's financials reveals no clear correlation between Guinness Plc CEO's remuneration and staff cost. In some years, both the CEO remuneration and staff cost moved in opposite directions while in some years they moved in similar directions.

 

In 2019, its CEO remuneration and staff cost both recorded a decline in their growth. Staff cost declined to N8.77bn in 2019 from N9.6bn in 2018 while its CEO remuneration declined from N461m in 2018 to N193m in 2019 (see Chart 90).

 

Chart 90: Guinness Plc CEO Remuneration (N'm) Vs Staff Cost (N'm)

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Source: Guinness Plc Audited Annual Accounts 

 

Union Bank Plc

Union Bank PBT/Highest Paid Director's Remuneration

The amount of profit generated per one-naira paid to Union Bank's CEO has fluctuated over the years, increasing and decreasing at various years. It followed a downward trend from 2015 to 2017 before regaining an upward momentum from 2017 to 2019.

 

Profit per one-naira paid to the CEO increased from N105.07 in 2018 to N144.44 in 2019 (see Chart 91).

 

Chart 91: Union Bank PBT/Highest Paid Directors Remuneration

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Source: Union Bank Audited Annual Accounts

 

Union Bank Revenue/Highest Paid Director's Remuneration

Union Bank's revenue to its CEO remuneration fluctuated between 2015 and 2019. It rose from 2015 to 2017 before dipping in 2018. 

 

Its CEO was able to generate a revenue of N968.28 per one-naira he received as remuneration in 2019, an improvement from N846.03 in 2018 (see Chart 92).

 

Chart 92: Union Bank Revenue/Highest Paid Directors Remuneration

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Source: Union Bank Audited Annual Accounts

 

Union Bank Highest-Paid Director's Remuneration Vs PBT

Union Bank's CEO remuneration is not determined by the PBT. Union Bank's CEO remuneration remained unchanged from 2017 to 2019 while its profit before tax recorded an increase from 2017 to 2019.

 

In 2019, Union Bank's CEO remained unchanged at N172m from the previous year while its profit before tax increased from N18.07bn in 2018 to N24.84bn (see Chart 93).

 

Chart 93: Union Bank Highest-Paid Director's Remuneration (N'm) Vs PBT (N'm)

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Source: Union Bank Audited Annual Accounts

 

Union Bank Highest-Paid Director's Remuneration Vs Revenue

Union Bank's annual revenue does not clearly explain the trends in its CEO's remuneration. As earlier noted, its CEO's remuneration remained unchanged at N172m from 2017 to 2019 while its revenue increased from N145.52bn in 2018 to N166.55bn in 2019 (see Chart 94).

 

Chart 94: Union Bank Highest-Paid Director's Remuneration (N'm) Vs Revenue (N'm)

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Source: Union Bank Audited Annual Accounts

 

Union Bank Staff Cost

Union Bank's staff cost had an upward trend from 2017 to 2019. Its staff cost increased by +2.88% in 2019. Its staff cost rose from N32.32bn in 2018 to N32.26bn in 2019 (see Chart 95).

 

Chart 95: Union Bank Staff Cost (N'm)

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Source: Union Bank Audited Annual Accounts

 

Union Bank Staff Cost Vs PBT

Union Bank staff cost and PBT both moved in the same direction from 2016 to 2019, hinting that a possible relationship between staff cost and PBT exist. In 2017, Union Bank staff cost declined to N15.52bn from N15.74bn. In the same vein, its staff cost declined to N29.56bn from N31.23bn in 2016.

 

Although there was a significant rise in its PBT of +37.47% in 2019, it only recorded slight growth in its staff cost of +2.88%. Its PBT increased from N18.07bn in 2018 to N24.84bn in 2019. Similarly, its staff cost rose to N33.26bn in 2019 from N32.32bn in 2018 (see Chart 96).

 

Chart 96: Union Bank Staff Cost (N'm) Vs PBT (N'm)

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Source: Union Bank Audited Annual Accounts

 

Union Bank Staff Cost Vs Revenue

It is difficult to determine the exact relationship between Union Bank's staff cost and its revenue. While its revenue recorded a consistent rise from 2016 to 2019, there were fluctuations in staff cost rising in some years and falling in other years.

 

Union Bank's revenue increased from N129.61bn in 2016 to N163.81bn in 2017 while its staff cost reduced from N31.23bn in 2016 to N29.56bn in 2017.

 

In 2019, Union Bank's revenue increased by +14.4% while its staff cost increased slightly by +2.88% (see Chart 97).

 

Chart 97: Union Bank Staff Cost (N'm) Vs Revenue (N'm)

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Source: Union Bank Audited Annual Accounts

 

Union Bank Highest-Paid Director's Remuneration Vs Staff Cost

Unlike its CEO remuneration which remained static from 2017 to 2019, Union Bank's staff cost fluctuated between 2015 and 2019. This indicates that there was no clear relationship between Union Bank's CEO remuneration and the growth in staff cost.

 

In 2019, its CEO remuneration remained static, not changing from the previous year while its staff cost increased slightly by +2.88% (see Chart 98).

 

Chart 98: Union Bank Highest-Paid Director's Remuneration (N'm) Vs Staff Cost (N'm)

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Source: Union Bank Audited Annual Accounts

 

Illustration 4: Top Ten: A Look at the Numbers: CEO and Staff Cost; Mixed Tales

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Downloadable Versions of 2020 Report (PDF)

1.      Executive Summary: CEO Remuneration 2020 Report - Paying the CEO in a Pandemic; The Unanswered Questions  July 30, 2020

2.     Full Report: CEO Remuneration 2020 Report - Paying the CEO in a Pandemic; The Unanswered Questions  July 30, 2020

 


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Previous Year's Report and Links

1.          CEO Remuneration 2019 Report: Making Sense of the Numbers for Listed Companies in Nigeria  July 30, 2019

2.         Full Report: CEO Remuneration 2019 Report - Making Sense of the Numbers for Listed Companies in Nigeria   July 30, 2019

3.         All Quoted Companies IR Pages - Proshare MARKETS

 

 

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Related News from CEO Remuneration 2020 Report

  1. Nigeria's Top Ten Income Earning Executives
  2. The Many Sides of CEO Compensation
  3. Executive Pay and Theoretical Approaches
  4. Between 2019 and 2020: Understanding The New Realities of CEO Remuneration
  5. CEO Remuneration 2020 Report - Paying the CEO in a Pandemic; The Unanswered Questions

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