In only about half of Nigerian top firms did the earnings of chief executive officers reflect the companies’ financial performances in 2019, a report published last month found.
This means only about half of top CEO pay in Nigeria could be explained by their company’s financial performance, the rest was subject to more unclear factors, the report wrote.For instance, as noted by the report, in Lafarge Africa, the CEO’s pay grew despite the company writing consecutive losses for three years. Michel Puchercos had a pay rise of +30 per cent between 2016 and 2018 and between 2017 and 2018 his pay went up by +21.2 per cent.
Between 2015 and 2018, the company’s CEO income rose by 754 per cent, but staff cost fell by 24.5 per cent within that period, representing a yearly decline of about -8.89 per cent.. Therefore, most of the previous pay rise was earned by Peter Ndegwa who for three-years headed the Nigerian operations of the company.As listed by the report, Nigeria’s top ten executive remunerations in 2019 were: Ferdinand Moolman, MTN, ₦585.
For instance, Mr Moolman’s MTN recorded consecutive increased revenue in the last three years, from ₦887 billion in 2017, to ₦1.04 trillion in 2018, to ₦1.17 trillion in 2019. Simply put, for every one naira Mr Moolman earned, he generated ₦1,996.34 in revenue for the company, an improvement from ₦1,819.82 in 2018.