NGX Paid Three Directors N754 Million On Executive Compensation.

For the year ended December 2021, the Nigerian Exchange Group (NGX), which operates the Nigerian Stock Exchange, paid its three executive directors a total of N754.8 million in executive compensation.

The amount paid this year is up 78.2 percent from the N423.1 million paid a year ago when the company only had two executive directors.

The salaries and benefits paid to executive management of multinationals and publicly traded companies are referred to as executive compensation. The figures are revealed in a company’s financial statement. The Chief Executive Officer and members of the Executive Director who are not Board members are included in the executive directors, according to the NGX.

Read also: On FCT Pedestrian Bridges, Constant Ambush and Rape

The NGX’s compensation package for directors includes a monthly basic salary, other allowances, performance incentives (paid annually in arrears), director fees (paid quarterly/annually in arrears), and sitting allowances, according to the company (after board and committee meetings).

Breakdown of NGX Executive Compensation
The company paid out a total of N811.6 million in remuneration to board members during the year, with sitting allowances and executive compensation accounting for N56.7 million and N754.8 million, respectively.
The Chairman of the Board of Directors was paid N6.6 million, up from N4.9 million the previous year.
The highest-paid board member, usually the MD/CEO, earned N160 million in executive compensation, up from N156.2 million a year ago.

When it comes to executive compensation, NGX is one of the highest-paying companies on the Nigerian Exchange.

For context, Zenith Bank paid out approximately N1 billion in executive compensation to its directors in 2021, according to recent reports. There are six executive directors at Zenith Bank. In 2021, GTB Holdings, one of Nigeria’s largest banks, paid executive compensation of N757.3 million.

Salary breakdown for NGX
The company also reported that it has 205 employees, down from 269 a year ago, after laying off 65 non-management employees.
Despite the decrease in headcount, total salaries paid to employees during the year were N3.2 billion, almost unchanged from the previous year.

Read also: The University of Niger, Spent N89 Million On Fence Construction.

According to our Reporter’s research, NGX employees earn around N16 million per year on average, making it one of the highest-paying companies on the NGX.
A closer examination of the report reveals that no employee earns less than N2 million per year. In fact, 79 employees, or 39% of the total workforce, earn more than N9.5 million per year. Over half of the employees earn more than N5 million per year.
For the year ended December 2021, Optics NGX reported a profit after tax of N2.2 billion, up 22% from the previous year.

However, profits from its associate companies CSCS and NG Clearing, in which it owns 31 percent and 27.7% respectively, accounted for a large portion of the profit (N2.1 billion).
It attributed profits of N2.1 billion and a loss of N38 million from CSCS and NGX, totaling N2.1 billion, which it recorded as profits in its books.
NGX’s profits would have been N281.8 million if not for profits from its associates.