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NGX Group spends N754 million on executive compensation for 3 directors

NGX employees earn about N16 million annually, making it one of the top-paying companies on the NGX.

Chidinma Anyalewechi by Chidinma Anyalewechi
March 13, 2022
in Stock Market
NGX Group spends N754 million on executive compensation for 3 directors

Oscar Onyema MD/CEO of Nigeria Exchange group

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The Nigerian Exchange Group (NGX) operators of the Nigerian Stock Exchange reported it paid its 3 executive directors a whopping N754.8 million in executive compensation for the year ended December 2021.

This year’s payment represents a 78.2% increase from the N423.1 million paid a year earlier when the company had just two executive directors.

Executive compensation refers to the salaries and benefits paid to executive management of multinationals and quoted companies. The figures are disclosed in the financial statement of companies. According to the NGX, the executive directors include the Chief Executive Officer and members of the Executive Director who are not Board members.

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According to the NGX, its package for directors includes basic salary (paid monthly), other allowances (paid periodically during the year), performance incentives (paid annually in arrears), director fees (paid quarterly/annually in arrears), and sitting allowances (after board and committee meetings).

NGX Exec Comps breakdown

  • During the year, the company paid out a total of N811.6 million in remuneration to board members broken down into N56.7 million and N754.8 million for sitting allowances and executive compensation respectively.
  • The Chairman of the board received N6.6 million up from N4.9 million a year earlier.
  • The highest-paid board member which is typically the MD/CEO earned a whopping N160 million in exec comps compared to N156.2 million a year earlier.
  • According to Nairametrics records, NGX is one of the highest paying companies listed on the Nigerian Exchange when it comes to executive compensation.

For context, Nairametrics recently reported Zenith Bank paid out about N1 billion in executive compensation for its directors in 2021. Zenith Bank has 6 executive directors. GTB Holdings, one of Nigeria’s largest banks paid out N757.3 in executive compensation in 2021.

NGX Salary breakdown

  • The company also reported it has about 205 staff members down from 269 a year earlier as it cuts down on about 65 non-management staff members.
  • Despite the drop in headcount, total salaries paid to staff was N3.2 billion during the year just about flat from a year earlier.
  • On average, NGX employees earn about N16 million annually, making it one of the top-paying companies on the NGX, according to Nairametrics research.
  • Further reading of the report also reveals no employee earns less than N2 million annually. In fact, 79 staff or 39% of the workforce earn over N9.5 million annually. Over half of employees earn over N5 million annually.

Optics

NGX reported a profit after tax of N2.2 billion for the year ended December 2021, an impressive 22% rise year on year.

  • However, a huge chunk of the profit (N2.1 billion) came from profits made by its associate companies CSCS, NG Clearing and where it owns 31% and 27.7% respectively.
  • It assigned profits of N2.1 billion and a loss of N38 million from CSCS and NGX respectively totalling N2.1 billion which it included in its books as profits.
  • Without adding profits from its associates, NGX’s profits would have been just N281.8 million.

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Tags: Executive CompensationFeaturedNGXNigerian Exchange Group

Comments 5

  1. 9jaRealist says:
    March 14, 2022 at 5:03 am

    Good that NGX pays its employees well – apparently across all levels! Kudos!!

    Companies should pay every employee a livable wage across the board, and not hoard revenue to declare profits and distribute to itinerant shareholders, while the employees whose sweat actually produce such revenue and profits can hardly sustain themselves and their families. Here’s hoping other listed companies will follow suit.

    Reply
    • Ezeoguine Anthony says:
      March 14, 2022 at 10:17 am

      What are you talking about? How about shareholders who were talked into buying this company s shares before and after demutualization at₦30 and above. Are they not entitled to some return on their investment? How can management be eating alone. NGX should have remained as it was, and not involve outside shareholders.

      Reply
    • Ifeoma Ugochukwu Musa says:
      March 14, 2022 at 12:50 pm

      I have friends in NGX and it has always ben complaint galore, rising BP from threats and slavery. It is high time SEC and Security Agencies beam their searchlight on the massive destruction of values going on in NGX. None of my friends earn N16million average salary as quoted in the write up. They all earn below. The above story is NOT a true reflection of what happened at NGX. Gratuity was stopped for the staff by this current management while the top management created one for themselves into which millions accrue annually. The current GCEO that transmitted from CEO collected over N300million to transmit while other staff were given obnoxious and despicable letters to sign away their future. As if adding salt to injury, over 25 workers were relieved in February 2022 of their duties in the name of restructuring while new teams are being recruited to suffer same fate. It is disheartening that staff having spent over ten years and as much as 26 years were relieved of their duties and ALMIGHTY TEMITOPE POPOOLA ensured they were indebted to NGX. Staff were only provided three months basic salary as entitlement after 26 years of service! In what do we describe slavery and wickedness? NGX management only know themselves. I stand by what I say and I assure you this is a small portion of the despicable acts in NGX. It cannot be a great place to work despite the huge numbers because it is few masters lording over the majority. The demutualization is an aberration and will never work. NGX with 4 CEOs on a thin and declining income streams, absence of new listings, weak investor confidence, overrated, overconfident and proud top management inability to understand local investor dynamics and unbridled wastages (twice undertook restacking in 5 years). It is a paddy paddy establishment without any national interest in focus and has lost its relevance. FMDQ has taken over because of poor leadership. Check out the numbers from both Exchanges and you will agree with me! Save NGX from dying. The leakages and stealing is legendary from a Private sector institution

      Reply
    • Bruce says:
      March 14, 2022 at 8:02 pm

      You are right…..especially the banking sector where Billions are declared every quarter and yet there are banks staff who still earned about 60,000 monthly in this highly inflated economy.

      It’s exploitative and slavery.

      Reply
  2. Abdullahi Alfa says:
    March 14, 2022 at 6:10 pm

    Much as employees should be well compensated, i disagree with you calling shareholders itinerant. They own the company remember? If you own a shop and the shop keeper wants to take everything and leave you with close to nothing in the guise that it is his sweat that made the money, will you accept that? When it is your cash that forms the equity of the company?

    Reply

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