Group CEO Maria Ramos' pay went up by 5.6%
ABSA Group Ltd, South Africa's largest retail bank, has recorded a 19% net income increase to R9.67-billion earnings per share, according to the 2011 annual report.
As a result of the rise in profit, Group CEO Maria Ramos' pay went up by 5.6%, bringing her total bonus to R20.7-million.
ABSA Group spokesman John Dludlu confirmed the figure, saying the amount was 6% more than that of 2010 after a strong performance by the company.
"Crucially, however, unlike in other companies, we've been bold in the level of our deferrals - the entire bonus for Ms Ramos (R14-million) is being deferred for three years subject to clawback provisions. This means that Ms Ramos got only R6.6-million for 2011," he said.
"The award is in line with our philosophy of linking pay to performance, retaining top talent and discouraging risky and reckless behaviour, and it is consistent with applicable local regulation and best practice. Our total compensation, as a percentage of Pretax profit for 2011, was 46% - down from 2010's 49.4%."
The financial report and bonuses come in the wake of the ongoing debate regarding allegations that the bank was going ahead with plans to retrench 3,000 employees.
This has been vehemently denied by Absa, which said theirs was a "reassignment" process rather than retrenchments. The group, however, has denied there being a mass retrenchment within the company.
"Absa has and will continue to evolve its system and processes, which sometimes lead to very limited job losses. Where possible, we will do this through natural attrition as evidenced by the reduction of 3580 roles last year, with retrenchments limited to 145.
"There is no plan to retrench 3,000 colleagues as widely reported," the group told I-Net Bridge last week.
Trade union Solidarity, however, is not buying this and has launched a massive campaign to put a stop to retrenchments at the banking group which it charges are being executed in a "callous and aggressive manner".
Absa, which is a subsidiary of the UK's Barclays Group plc, are facing a Facebook, Twitter and YouTube-fuelled campaign by Solidarity to stop the retrenchments.
In a letter to the Barclays chairman, Marcus Agius, Solidarity wrote: "Over the past year, Absa embarked on a restructuring programme which is now in full swing. Our information is that Barclays instructed Absa to cut its personnel expenses by 10%. This process is being executed in a callous and aggressive manner. Employees of Absa relate how they were informed that their posts were redundant; that they were immediately instructed to pack up their belongings and to hand in their laptops."
- Additional reporting by I-Net Bridge
Absa CEO awarded R20m bonus
Group CEO Maria Ramos' pay went up by 5.6%
ABSA Group Ltd, South Africa's largest retail bank, has recorded a 19% net income increase to R9.67-billion earnings per share, according to the 2011 annual report.
As a result of the rise in profit, Group CEO Maria Ramos' pay went up by 5.6%, bringing her total bonus to R20.7-million.
ABSA Group spokesman John Dludlu confirmed the figure, saying the amount was 6% more than that of 2010 after a strong performance by the company.
"Crucially, however, unlike in other companies, we've been bold in the level of our deferrals - the entire bonus for Ms Ramos (R14-million) is being deferred for three years subject to clawback provisions. This means that Ms Ramos got only R6.6-million for 2011," he said.
"The award is in line with our philosophy of linking pay to performance, retaining top talent and discouraging risky and reckless behaviour, and it is consistent with applicable local regulation and best practice. Our total compensation, as a percentage of Pretax profit for 2011, was 46% - down from 2010's 49.4%."
The financial report and bonuses come in the wake of the ongoing debate regarding allegations that the bank was going ahead with plans to retrench 3,000 employees.
This has been vehemently denied by Absa, which said theirs was a "reassignment" process rather than retrenchments. The group, however, has denied there being a mass retrenchment within the company.
"Absa has and will continue to evolve its system and processes, which sometimes lead to very limited job losses. Where possible, we will do this through natural attrition as evidenced by the reduction of 3580 roles last year, with retrenchments limited to 145.
"There is no plan to retrench 3,000 colleagues as widely reported," the group told I-Net Bridge last week.
Trade union Solidarity, however, is not buying this and has launched a massive campaign to put a stop to retrenchments at the banking group which it charges are being executed in a "callous and aggressive manner".
Absa, which is a subsidiary of the UK's Barclays Group plc, are facing a Facebook, Twitter and YouTube-fuelled campaign by Solidarity to stop the retrenchments.
In a letter to the Barclays chairman, Marcus Agius, Solidarity wrote: "Over the past year, Absa embarked on a restructuring programme which is now in full swing. Our information is that Barclays instructed Absa to cut its personnel expenses by 10%. This process is being executed in a callous and aggressive manner. Employees of Absa relate how they were informed that their posts were redundant; that they were immediately instructed to pack up their belongings and to hand in their laptops."
- Additional reporting by I-Net Bridge
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