CEO 2021 Executive Summary - proshareng.com 2021 E… · Learn Africa Plc Branch IFS FintechNGR Med-View Airline Paxful MRS Oil M ut al B e nﬁs Asr ce Jumia Omatek Ventures Transcorp

July 2021

CRemuneration

Executive Summary

CEO Remuneration: From COVID to Collaboration

1602 - 8842 Vol. 1 No. 265

https://www.proshareng.com/report/Proshare%20Confidential%20/Full-Report--CEO-Remuneration-2021-Report---From-COVID-to-Collaboration-/14826


Contents

What The Report Covered.

CRemuneration

Executive Summary

www.proshareng.com [email protected] @proshareProshare NigeriaprosharengProshareNGProshare Nigeria

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Executive Summary – Governance meets New World.

Introduction – Breaking into New Ideas and Fresh Realities.

Top 10 CEOs – How the Top Half Get Compensated.

Gender Collaboration – Women and the Corporate Suite.

CEO Remuneration: According to the Trading Board.

Key Findings - Understanding the COVID-19 Work-Life Balance.

The Many Sides of CEO Compensation – Selected Sectoral Analysis of Executive

Rewards.

Conclusion – Work and the Productivity Promise.

Advice to Users of This Report.

Contact





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Executive Summary

CEO Remuneration: From COVID to Collaboration CRemuneration

Executive Summary

www.proshareng.com Page 2

“Working from home makes it much harder to delineate work time from personal time. I encourage all

of our employees to have a disciplined schedule for when you will work, and when you will not, and to

stick to that schedule.” – Dan Springer, CEO of DocuSign

With COVID-19 still bearing down on several global economies the whole concepts of work, purpose,

collaboration and CEO remuneration are taking on new dimensions requiring fresh insights, new

strategies, and critical rethinking. As DocuSign chief executive officer (CEO), Dan Springer, noted in the

quotation above, the emerging flexible work culture may require some work.

Not only is the workplace in need of a do-over but also corporate structures and management approaches

may need a remake. Organisations are scooting along the transition tarmac from pyramid structures to

flatter engagements with fluid collaborative teams and defined goals. This has been called 'holacracy' or

a working system where teams engage, disengage, and reengage to achieve specific corporate goals and

responsibilities are shared across employees according to required needs to meet specific objectives (see

illustration 1 below).

Governance Meets New World

Illustration 1: From Hierarchy to Holacracy

Holacracy Vs Hierarchy

Source: Mckinsey, Proshare Research, EcographicsCRemuneration

Holacracy takes powers traditionally reserved forexecutives and managers and spreads them acrossall employees.

In a traditional hierarchy, layers of managementestablish how products are approved and monitored.

UPPERMANAGEMENT

MIDDLEMANAGEMENT

STAFF

SUPERVISORS

CEO

SUPER-CIRCLE

One that containssub-circles. This couldbe Marketing.

SUB-CIRCLE

Each is dedicated toa function. This couldbe Digital Advertising.

ROLE

A task related to afunction. This could beSocial Media Producer.

words, continuously improving UX/UI).

In going forward from 2021 several local companies will have to come to terms with the pains of making

the transition from hierarchical organizational structures to organizational structures that are flatter but

significantly more agile and responsive to a setting sprinkled with uncertainty. To cope with the

transition, corporate boards will have to make some key decisions that would involve:

Bringing technology into the organizational mix to facilitate swift responses to changing

customer expectations.

company's products or services by way of experiencing concentric cycles of excellence (in other

Establishing fast feedback loops to guarantee that customers engage interactively with the

Creating moments of continuous corporate adjustments prompted by machine learning (ML)

and artificial intelligence (AI) which become central to corporate performance.

The domestic Nigerian corporation from 2021 would have to rethink, reimagine and restrategize. The

days of the laidback corporate behemoths imposing themselves on consumers are over, companies that

aim for sustainability in today's environment must be nimble, competitive, and imaginative. The absence

of imagination or creativity means being buried in the graveyard of yesterday's giants. In the coming

technological storm, the only shelters for organizations that want to see their logos on corporate

buildings are consumer sensitivity, corporate agility, and market awareness ( ). see illustration 2 below

Supporting workers with learning new ways and unlearning old ones.

The post-COVID-19 age will usher a period where organizations must be agile to survive, hierarchical

structure will have their place but to respond swiftly to the moving corporate and economic pieces

companies will need to work in small and large cohesive clusters to meet either physical production

targets or service delivery standards. Organisations must increasingly become what long-time Royal

Dutch Shell strategist, Aries de Gues called the 'living company'. According to Peter Senge who wrote the

forward to the book of the same title, “Seeing a company as a machine implies that it will run down

unless it is rebuilt by management. Seeing a company as a living being means that it is capable of

regenerating itself, of continuity as an identifiable entity beyond its present members”.

It is this sustainability that the holacracy-structured company attempts to achieve as it reshapes itself for

assignments and targets to ensure that customers' needs and expectations are exceeded or at least met.

www.proshareng.comPage 3


Executive Summary

Illustration The Hard Work of Change


Executive Summary


The Hard Work of Change

Source: Proshare Research, Ecographics CRemuneration

Learn and relearn

Supporting workers

to learn and unlearn

will be critical in

going through 2021

Technology

Technology will be

a major separator

of the good, the

bad, and the

uncertain in 2021

Feedback as a strategy

Companies that will

thrive in 2021 and

beyond will have to

go through multiple

iterations of

consumer

expectations.

Bringing Artificial Intelligence (AI)

and machine learning to the fore

Machine learning

(ML) and Artificial

Intelligence (AI) will

become central to

corporate sensitivity

to markets and

consumer actions

between

2021 & 2025.

Illustration 2 - The Hard Work of Change

In the new age of the company, sustainability will mean more than products and services it would mean

regular process and product iterations that are set to meeting specific but changing or changeable

consumer needs. Environment, social and governance (ESG) considerations will become majorly

important to the corporate service or product delivery processes, as companies move in lockstep with

social and consumer signaling. In this ecosystem, gone will be the enterprise high on corporate influence

and low on consumer satisfaction, and in will be the business that is high on consumer aspirations and

low on product or service history. Indeed for the sustainable company, tomorrow does not wait, it is

already here.

Tomorrow’s markets like people can be cranky. The uncertainty of consumer preferences remains a

fundamental part of the changing dynamics of product and service markets. Unlike 40 years ago

consumers in the 2000s expect to be served by companies in a manner that emphasizes precision, speed,

and empathy. The contemporary consumer is impatient and quickly pivots to alternative products or

services as soon as expectations are not met. The new consumer is not a taker but a demander, she or he

insists that service or product promise be fulfilled or ‘canceled’ meaning that the product gets dropped

from the consumer’s scale of preferences and this could become viral as the consumer’s experience is

narrated on multiple social media platforms.

The Ways of Tomorrow's Markets


Executive Summary


A recent example of how consumers influence product or service demand was a recent press conference

where Christiano Ronaldo of Juventus in Italian Serie ‘A’ knocked two bottles of Coca Cola together and

picked up a bottle of water and exclaimed ‘agua!’ or ‘water!’ the market value of the Cocoa Cola company

fell by US$4bn on the New York Stock Exchange (NYSE) hours after the press briefing.

The incident demonstrates the rising power of millennial consumers and the environmental, social, and

governance concerns of contemporary buyers. The aspirational company will have to align itself with the

greener and health-conscious views of millennial and post-millennial consumers or they would go the

way of the digital imaging company, , which fizzled from being a prominent Fortune 100 Rank Xerox

company in 1998 to filing bankruptcy within a decade.

Corporate sustainability should not be about the past but about the future, analysts observe that

companies aiming for longevity must dream dreams and see visions rather than stay stuck in historical

time warps. Nigeria’s corporate giants of the past are largely resting peacefully in the scrapyard of

yesterday’s greats as new companies emerge as corporate champions ( ).see illustration 3 below

Illustration 3 - Corporate Nigeria in Transition

Source: Proshare Research, EcographicsCRemuneration

2000-2021Companies

MTN Ardova

Dangote

Berger Paints Proshare

BUA Cement

GLO Chams

FBN Holdings DAAR Communication

Access Bank e-Tranzact Int’lPWC

Eko CorpAirtel

May & Baker

Eterna

Interswitch

Evans Media

Zenith

Leadway Insurance Glaxosmithkline

Jaiz Bank

Branch IFS Learn Africa Plc

FintechNGR

Med-View Airline Paxful MRS Oil

Mutual Benefits Assurance

Jumia

Omatek Ventures Transcorp Hotels

Vitafoam

Mouka Foam

GTB UACN

UBA

Trans-National Express

Konga

SAHCO

11 Plc Royal Exchange

Afromedia

FDC

Channels Television Arise TV

Mutual Benefits Assurance

SAHCO

May & Baker

Flutterwave

TVC

MBA

Top Companies

Unilever British American Tobacco UAC P&G

PZ

TotalCadbury

Julius Berger

Nestle

FBN

Schlumberger Oil & Gas

National BankLafarge Savanah

Nigeria Breweries ACBNew Nigeria Bank

Eleganza

Afribank Bata

IMB

Lennards

Pacific

Costain

Agip

RCC Gcappa UnipetrolABB

African PetroleumABC Transport

Okomu Oil

National Oil

Okitipupa Oil Companies

Oluwaglass

NBCOwunka Higtech

7UP

Global Soap

Sahara Energy Oil

Okin Biscuit

Ericsson

Premier Breweries

FCMB

British Layland Consolidated Breweries

Afprint

UNTL

NICHEMTEX

1980-1999 Companies

Unilever

Agip

ACB

Guiness

Lagos Marriot Hotel

Raddison Hotel

VS

1980 - 1999 2000 - 2021

If a company is to navigate the complexities and uncertainties that will dominate business decisions between 2021 and 2025 must be prepared to address the following five issues:

The new shape of the workplace. The required future skills of the new knowledge worker. The integration of artificial intelligence (AI) and machine learning (ML) into the corporate

business model and culture.



Executive Summary

Illustration 4 - From Trapped to Agile: Corporate Transitions

The need for an ESG framework that supports corporate sustainability.

The need for big data and analytics as tools for corporate decision-making.

The Age of Data

Corporations in 2021 will see big data as an increasingly important part of their business strategy. The

use of consumer and customer-related data to refine corporate approaches to markets and business

segments would define the state of market play. Digital laggards will see their businesses shrink to a

modest pile of dust as digital vanguards grow their market share and deepen customer engagement

through faster service and product delivery nodes and customized value chain engagement.

The agile data-driven enterprise will weave past consumer resistance and match consumer expectations

as it supports rising aspirations. Firms stuck along traditional channels of consumer interaction are

likely to eat chaff for breakfast as they stay trapped in the past ( ). see illustration 4 below

From Trapped to Agile: Corporate Transitions

Trapped Transitionary Agile

These companies are known for being:

Prone to fighting fires

Rigidity

Working in departmental silos

Political in-fighting

Committed to structure

These companies are known for:

Formality

Boundaries

Shifting focus

Risk averseness

Quasi-flat structure

These companies are known for being:

Disruptive

Imaginative

Creative

Resilient

Iterative learning

Nimble-adaptive

Decentralized


The agile corporation will make data and analytics a central part of the business management processes

as the daily flow of information is filtered to provide strategic insights and business-sensitive triggers to

consumer changes. However, companies may fail to achieve the optimal results desired from data-

inspired executive decision-making, if the process of data-titration, interpretation, and presentation is

left to the company's information and technology (IT) department.

This is a common mistake of several local Nigerian businesses. The IT manager is seen as an ombudsman

that waves a magic wand over the company's strategic problems and they all disappear. This is fantasy

gone wild. The IT department can only work with the data it is given and even at that, it is unlikely to




Executive Summary

Artificial Intelligence (AI) and the Corporate Playbook

Companies designed for sustainability would require data-savvy chief executive offices (CEOs) who

would lead the charge for a frontal response to the messages received from data analytics.

understand the context and nuances of the interpretation of the data it processes, this requires deeper

thinking and greater technical ability by way of analytics.

The CEO must bring all managers up to speed with the relevant corporate market data and align the data

with budget plans. The different corporate teams would adjust business actions to goals required to meet

customer and investor expectations. The IT department of companies, therefore, provides the platform

but not the levers for data application.

The suitably agile company would likely adopt a task-defined team arrangement with representatives

from different departments in the company that provide different perspectives and context to the data

that requires interpretation and forms the basis of scenario-dependent recommendations.

Technology is not simply an add-on for the company of the future but a plug-in. The company that hopes

to remain sustainable over the next decade cannot afford to simply attach technology to the old ways of

operating; it must tear up the old playbook and write a new script with the customer as the primary focus

of engagement. Data analytics and artificial intelligence will become the hub of a new way of engineering

products and services that meet consumer needs and encourage spending decisions.

Corporate analysts have noted that if companies want to adopt analytics and artificial intelligence to

build business sustainability, they cannot simply buy off-the-shelf solutions and add them to existing

operations, things, unfortunately, are not that simple.

In a recent on the use of analytics and artificial intelligence in the biopharma business, McKinsey article

Consulting writers Stephanie Bayer, Sulay Sandy, Ulf Schrader, and Matthias Spiegl note six key

principles in ensuring that adoption is successful or at least beneficial ( ). see illustration 5 below

Illustration 5 - Six Principles of Leveraging Digital and Analytics

Six Principles of Leveraging Digital and Analytics

Source: Mckinsey, Proshare Research, EcographicsCRemuneration

“In God we Trust, Everybody

else must bring Data”

Start with a leadership-backed

impact-driven strategy and

road map

Accelerate transformation with experienced leaders,

skilled staff, and multifunctional

teams

Implement a strategy architecture

and governance for data

Build a tried and tested delivery

methodology for digital and analytics

solutions

Construct a fit-for-purpose

technology stack Drive adoption and business

change by engaging with the front line


Executive Summary


The authors note that companies that intend to use AI to leverage corporate strategy must first Start

with a leadership-backed, impact-driven strategy and roadmap. In other words, the AI strategy must be

driven from the top of the company and must be designed to achieve high-impact results along a

collectively agreed path. Why AI?

The second consideration in the clever use of AI according to the writers involves accelerating

transformation with experienced leaders, skilled staff, and multifunctional teams. In their study of the

biopharma sector, they note that “As part of the people and leadership strategy, it is also important for

companies to identify the skills they need, including those that can be filled internally with training and

development; investing in their talent will be vital for companies to establish digital as a competitive

advantage. For external sourcing, we have seen pharma and biopharma companies form successful

partnerships with research and academia. These partnerships have given them firsthand knowledge of

technology advancements and enabled them to bring those advancements to the shop floor”. Despite

the importance of technology, the people required to implement its adoption as part of the business

process are just as important as the mathematical algorithms and code scripts they use to gain a deeper

understanding of their customers.

A third consideration for the strategic use of AI is the implementation of a strategy, architecture, and

governance framework for data use. This would see to it that companies take advantage of big data to

shape their products and services and provide organizational support structures that are focused on

delivering value to consumers or users of the company’s outputs.

The writers note that the fourth stop in the transition from a trapped to agile AI-enhanced corporation is

the building of a tried-and-tested delivery methodology for digital and analytic solutions. They noted

that “Delivering digital-and-analytics solutions is a complex process that requires an intense

commitment of time and resources. It’s not a one-time effort, but a new way of working that is essential

for high-performing organizations”.

According to the McKinsey researchers AI adoption “can drive the next wave of business optimization

by transforming operational performance, shortening time to market, improving quality and yield,

reducing supply chain volatility, and accelerating technology transfers” outcomes that most

companies would cherish considering the impact that the recent COVID-19 pandemic has had on their

2020 operations.

According to the authors of the report “Success requires a delivery protocol that codifies technology-

enabled best practices for delivering digital-and-analytics solutions tried and tested by practitioners.

This protocol helps ensure predictability, output quality, and uniformity in solution delivery. It’s

essential for scaling solutions that have been successfully piloted. Just as you wouldn’t institute a new

change-over process without standard operating procedures, you should not embark on a digital-and-

analytics transformation without a delivery protocol”.

The delivery protocol involves a look at processes, people, and technology enablers. By creating,

clarifying, and implementing a delivery protocol a company stands a better chance of ensuring that its

digital transformation endures, and the organization is properly prepared to face future disruptions.

Constructing a fit-for-purpose technology stack is the fifth element of the digital master plan of a



Executive Summary

To wrap up the AI transformation initiative companies will need to tackle the people problem. To drive

adoption and change the C-suite executives must engage with their frontline. The last mile adoption and

culture change needed for corporate agility remains one of the most difficult stages in building an

organization that is nimble enough to withstand a event like COVID-19 (black swan see illustration 6

below).

sustainable business operation. But what does a fit-for-purpose technology stack mean? What this,

means is that companies that want to build defensive shields against business disruptions between 2021

and 2030 must ensure that they put in place operating technology (OT) and information technology (IT)

that allow differentiated performance across teams and service or product lines. For example, a Nigerian

Zenith Bank could decide that the operating technology needed for consumer retail banking should be a

shade or two different from the OT of investment or wholesale banking. Take FBNH, Nigeria’s oldest

financial Holdco, for example, the operating technology for its agency banking success is different from

the operating technology that drives the operations of its FBNQuest investment banking arm.

Outside the banking and finance sector, the same principle would apply. Nimble companies would need

to develop technology stacks suited to products or services. In reviewing OT and IT companies need to

carefully consider their platforms and how it connects to data sources. Mining data and the production of

actionable reports would be critical in the new economy as companies elbow one another to provide

consumers with exceptional product and service journeys.

McKinsey’s researchers noted that “The rollout of new digital solutions should be accompanied by

division-wide change management. Your change management plan should include ways to get senior-

leadership support, formalize new incentives, engage with employees, and empower key influencers”.

Illustration 6 Nigerian Businesses:

The Search for Agility


Executive Summary


The Search For Corporate Agility


FragileLoose corporate structureWeak internal processesLight governance standardHigh creativityEarly-stage lack of focus

Start-up Corporation

Nimble CreativeFlexible structureHigh governance standardQuick decision-makingResilientAdaptable

Agile Corporation

Dominant structure with contesting silos of authorityCorporate battles on several fronts.In-group, out-group peer strugglesTurf warsRigidity

Trapped Corporation

Strong corporate structureRigid operational activitiesTop-down hierarchical management style (chain of command).Slow response to external disruption.Risk-aversion (risk intolerance)Cascaded decision-making

Bureaucratic Corporation

Dy

na

mic

Ca

pa

bil

ity

Str

on

gW

ea

k

Weak Strong

Stable Backbone

Illustration 6 - Nigerian Businesses: The Search for Agility

Hal Gregersen, senior lecturer MIT Sloan recently observed that companies “…make enormous

investments into the technical side of digital transitions and comparatively minimal

investments in actually helping the individuals navigate the challenging transition”.

This imbalance in resource commitment could reduce the effectiveness of the overall digital/AI strategy

as human resource limitations restrict the scaling of businesses.

As businesses absorb AI into their operations to improve productivity and customer product or service

experience, they must equally be prepared to improve the skills of their workers and ensure that the right

balance is achieved between AI adoption and worker adaptation. The frontline worker is just as

important as the backline techie.

As AI and ML become integral parts of the modern business process worker compensation in the new

tech-inspired environment has begun to raise fresh issues centered on adequate work compensation for

both C-suite executives and line managers. Indeed, even factory and shop floor workers are beginning to

look towards a realignment of work and pay.



Executive Summary

CEO Incomes in the New Age of Tech

How do workers get compensated in an age of flexible work? Should incomes remain the same as in the

pre-COVID period or should they be tweaked to accommodate changes in work/lifestyle choices?

The experience in Nigeria suggests that employers believe that there is no need to adjust worker

compensation for the change in operational location. Most employers argue that the same volume of

work gets done whether the worker works from home or the office because deliverables remain

unchanged. Working from home (WFH) has its benefits but also poses some challenges resulting in

some companies rescinding or modifying the flexible work arrangement.

Most companies that adopt flexible work practices require their staff to be in the office physically from

between one to three days a week. A few companies have adopted a rotational system where coming to

work physically occurs on alternate weeks with departments requiring teams to come in after a full week

of physical absence.

Remote work may not be gender-neutral. Some analysts believe that remote work

adversely affects women more than men as they argue that women would be increasingly

predisposed to committing added time to family chores and taking care of the children while they

are at home. Besides, even where women are not married, their ability to assert their professional

worth is weakened by their physical absence at the workplace.

The Flip Side

Watering down of shared purpose. Workers that sit together express shared purposes and

show deeper commitment to targets than workers that work remotely.

Improving computer skills and upskilling social interaction online through platforms such as

Microsoft Teams can bring about improved productivity in an environment of holacracy. This flat

organizational structure fully supports an agile approach to service and product delivery through

remote collaborations.

It appears that several companies are in a 'touch and feel' mode where they experiment with the best

arrangement that achieves optimal performance. However, a few corporate analysts are beginning to

rethink remote work and believe it comes with some drawbacks that have not been properly assessed, the

problems of WFH according to these observers include but are not limited to the following:

Remote work could create a sense of isolation. The absence of human-t0-human physical

stimulation could engender a sense of being 'alone' leading to mental health issues.

Remote work has tentatively been seen to increase worker concentration as room for distraction

becomes less than where a worker is required to be physically present at the office.

Remote work or work from home (WFH) has resonated well with a tech-savvy younger

generation of workers. It has given them work flexibility and opportunities to improve their skills

by saving commute time and freeing up time for learning. In Nigeria large companies are

increasingly permitting workers to work from home on alternate weeks or choose days of the

week they would work in the office and the other days they can work from home. Does this mean

shorter working hours? No. WFH has seen workers stick to the grind of their assignment

completion with a greater commitment to timeliness and deadlines. Workers tend to put in more

hours through WFH than when they were physically present at the office to the eternal surprise of

previously skeptical CEOs.


Executive Summary


CEO pay in a fast-paced world of change would depend on how adaptable companies prove to be, slow

companies will see the salaries and other compensations of their CEOs tank as the revenues fall on the

back of shrinking patronage. As the demography of customers change sustainable companies must learn

how to ride the varying waves of consumer expectations ( )see illustration 7 below

Sustainability will increasingly require a more aggressive approach towards consumer satisfaction,

process optimization, and corporate agility.

Strategic thinking and corporate positioning and repositing will become premium

considerations going forward. Former longtime Shell Dutch corporate strategist Aries de

Geus's 'living company' must be a thinking company with tremendous resources

committed to thinking and the translation of thought to pre-emptive corporate action

supported by data analytics, machine learning (ML), and artificial intelligence (AI).

Workers could find that they could more easily generate extra incomes from a bit of moonlighting on

digital projects. For CEOs, this could mean in-house mentorship on remote digital and mobile platforms

and digital podcasts that help other C-suite executives get a grasp of glacial business changes and how to

cope with the disruption. Indeed documenting digital learning moments and using them as resource

materials for corporate guidance could prove invaluable as it provides carefully curated decision making

insights to help corporate managers navigate problems ranging from black swan events like the COVID-

19 Pandemic through to grey swan events like commodity price declines and then onto the less difficult

white swans events like rising domestic interest rates as the federal government competes with the

private sector to compete for funds needed to fill the widening FGN annual budget deficit.

The jury is still out on how much remote work adds to worker productivity and improved corporate

earnings but what is clear is that workers' salaries and compensations may not change significantly

because of the new work mode, but what could be a fair game for change is the new streams of earning

opportunities resulting from remote work.

Does the new work environment suggest a different ecosystem for labour compensation?

Should the CEOs pay somehow reflect his or her new digital reality?

Illustration 7 - Generation in Transition


Executive Summary

Illustration 7 - Generation in Transition

Generation in Transition

Source: McKinsey and Proshare Research, Ecographics CRemuneration

Section 2 takes a tour of the many sides of CEO remunerations in 2020. It does a rundown of CEO

Section 1 of the report delves into fleshing out the contours of the new digital reality of work and

corporate service and product delivery. The section reviews the new ideas that dominate corporate

conversations around corporate sustainability, environment, social, and governance (ESG) issues that

shape the corporate interface with customers. The younger and increasingly dominant customer cluster

around generation Y and Z were born between 1980 and 2010. This young demography is communal,

digital, and high on ethics (contrary to the perception of baby boomers and their forerunners that

generation Y and Z are unfocused drugged-up vagabonds). The section draws the outlines of the new

local realities of corporate Nigeria.

CEOs who want to protect their compensation and perhaps see them grow must develop a

deeper corporate understanding of the customer of the future and design goods and

services around the expected preferences. CEOs may need to worry less about yesterday

as they muse over tomorrow.

Today’s young people differ from yesterday

Baby boomer1940-59

Gen X1960-79

Gen Y (millennial)1980-94

Gen Z1995-2010

B X Y Z

CONTEXT

BEHAVIOUR

CONSUMPTION

PostwarDictatorship and repression in Brazil

Political transitionCapitalism and meritocracy dominate

GlobalizationEconomic stabilityEmergent of Internet

Mobility and multiplerealitiesSocial networksDigital natives

IdealismRevolutionaryCollectivist

MaterialisticCompetitiveIndividualistic

GlobalistQuestioningOriented to self

Undefined ID“Communaholic”“Dialoguer”Realistic

IdeologyVinyl and movies

StatusBrands and CarsLuxury Articles

ExperienceFestivals and travelFlagships

UniquenessUnlimitedEthical


Executive Summary

Advice To Users Of This Report

compensation and scrubs the data for unique perspectives. The report drives through corporate sectors

to see how the compensation of CEOs differed from industry to industry. ICT sector (MTN) and the Oil

&Gas sector (Seplat Energy) were top of the log of executive compensation for companies listed on the

Nigerian Exchange Group (NGX). However, the ICT only had two companies in the list of top ten most

highly paid executives in Nigeria while the Consumer Goods sector had three executives.

Disruption is here and all CEOs must have a hang of technology and how adoption or adaptation will plug

into corporate strategy and sustainability.

Section 4 does a deep dive into how executive compensation relates to company performance. It

benchmarks executive compensation against corporate earnings and changes in staff cost. For example,

in Seplat executive compensation rose while the company posted a yearly loss, but a quick explanation

would be that the planned increase in staff cost was before the onset of COVID-19 and a downward spiral

in oil prices as a result of the Q1 2020 disagreement between Russia and Saudi Arabia over the quantity of

oil considered optimal to stabilize prices against sagging global demand.

Section 3 pivots towards a slightly broader look at top executive compensations and assess total

compensation considering bonuses, dividends, and any other ancillary benefit from running the

business. It was noted that no Insurance company on the NGX paid a dividend in 2020. This depressed

the total compensation of their top executives. Top executives in Dangote and MTN while they appear in

the top ten executive incomes in corporate Nigeria, they do not hold shares in the companies they run.

Surprisingly, Herbert Wigwe of Access Bank is not in the top ten earners list based on his basic

compensation despite the relative sparkling performance of the bank in 2020 which defied COVID-19

pains. However, when expected dividends are thrown into the mix Wigwe rises to the third position of

top-earning CEOs of companies listed on the NGX.

Section 5 looks at the executive pay packet at tries to shake tea leaves to gain an understanding of the

underlying drivers. Does the CEO’s pay tie in with profitability or revenue growth? Is the CEO’s

remuneration a reflection of his or her superior managerial skill or talent? Prey what in heavens name

lurks behind those C-suite salaries? Like coconut water, the top Nigerian CEO’s income is a mystery.

The final section of the report, Section 6, takes a shot at explaining work and productivity in an age of

rampant technology. The CEO must rise beyond being a boss to being a visioner, a thinker, and a tech

denizen, the CEO may not be a tech wizard but must have sufficient knowledge of how emerging

technology could disrupt or enhance business. Leaving the understanding of technology to the in-house

nerds could prove dangerous, particularly since such nerds rarely have an appreciation of the overall way

in which things hang together within the broader context of medium to long-term corporate objectives.



Head, Research Managing Editor


Executive Summary

Proshare Nigeria, founded in December 2006, is Nigeria's No. 1 and most trusted online financial hub dedicated to serve as a

critical bridge between the market and investors and stakeholders. Proshare is a multiple award winning and professionally

run research, data, news and analysis services firm with eight distinct practice areas – Economy, Business, Markets, Regulators,

Technology, MSME, Personal finance and Media.

Ultimately all decisions are made by you. There is risk of loss in all trading and investing decisions. Past performance is not

necessarily a guide to future performance and all investment can go down as well as up.

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This report was written and published on and is based on the best publicly available information at that time. July 30th, 2021

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Creation Date:

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Teslim SHITTA-BEY [email protected]

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+234 805 585 2156

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This report was put together by Teslim SHITTA-BEY, Managing Editor, Proshare Content, Adaeze

NWACHUKWU, and Abdulqudus ISIAKA both Economists, Proshare Research with legal research support

by Chioma ECHEBIRI under approval by Proshare Research. Contact Authors vide [email protected]

/ ,[email protected] Production of report put together by Proshare Graphics


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