Skip to content 
Absa CEO’s salary is making headlines with Kenny Fihla’s appointment. He earned R183,500 per day at Standard Bank in 2024—more than most South Africans earn in a year. His move to Absa as chief executive, effective June 17, 2025, has thrust executive pay into the spotlight. Why do bank CEOs command such sums? What does Fihla’s appointment mean for Absa’s future?
This article dives into the numbers, the reasons behind them, and actionable strategies for businesses and professionals navigating high-stakes compensation. From benchmarking salaries to addressing income inequality, here’s what you need to know.
Absa CEO’s Salary: Kenny Fihla’s Big Move
Fihla’s appointment as Absa’s CEO marks a pivotal moment for South Africa’s third-largest bank by assets. After 18 years at Standard Bank, where he served as deputy CEO and head of Corporate and Investment Banking (CIB), Fihla resigned unexpectedly in March 2025. Absa snapped him up, naming him CEO to replace Arrie Rautenbach, who retired early after two years. Fihla’s track record is impressive: he doubled Standard Bank’s CIB earnings to R20.5 billion since 2017, proving his ability to deliver results in complex markets.
But the real headline? His pay. In 2024, Fihla earned R67.2 million at Standard Bank, including a fixed salary of R7.9 million, R841,000 in retirement contributions, R479,000 in benefits, R26 million in short-term incentives, and R35.2 million in performance rewards. That’s down slightly from R69.9 million in 2023, but still a staggering sum. Absa hasn’t disclosed Fihla’s new salary, but it’s unlikely to dip below his predecessor’s R35.4 million in 2024. For context, Standard Bank’s CEO Sim Tshabalala earned R89.2 million in 2024, setting a high bar.
Why Absa chose Fihla is clear. “Kenny is a recognized leader with substantial Pan-African banking experience,” said Absa Board Chairman Sello Moloko. His relationships across the financial ecosystem and proven results make him a safe bet to steer Absa through economic headwinds and competitive pressures. But his paycheck raises questions about fairness, value, and what businesses can learn from such high-stakes hires.
Why Bank CEOs Earn Millions
Ever wonder why CEOs like Fihla earn so much? It’s not just greed. The market for top-tier talent is brutal. Banks like Absa operate in a global arena, competing for leaders who can manage billions in assets, navigate regulatory minefields, and deliver shareholder value. Only a handful of people have the skills—and the stomach—for the job. According to Salary.com, CEOs are paid a premium because their decisions directly impact profits, stock prices, and market share. A wrong move can cost billions; a right one can transform a company.
In South Africa, the stakes are higher. The banking sector drives the economy, but it’s battered by currency fluctuations, high interest rates, and political uncertainty. Leaders like Fihla must balance growth in African markets with domestic challenges like load-shedding and coalition politics. Bonuses and incentives, which make up 70–80% of their pay, reward performance metrics like earnings growth, customer acquisition, and risk management. For example, Fihla’s R26 million short-term incentive in 2024 was tied to CIB’s doubled earnings. It’s a high-risk, high-reward game.
But there’s a catch. South Africa’s income inequality—among the worst globally—makes these salaries a lightning rod for criticism. When a CEO earns 1,000 times more than the average worker, questions of fairness arise. Non-profit Just Share argues that such pay gaps erode trust and fuel social unrest. Yet, banks argue that cutting CEO pay would drive talent to London or New York, leaving South Africa’s economy weaker.
Benchmarking Absa’s Pay Against Peers
How does Absa’s CEO pay stack up? Let’s compare. In 2024, Absa’s interim CEO Arrie Rautenbach earned R35.4 million, significantly less than Fihla’s R67.2 million at Standard Bank. Standard Bank’s Sim Tshabalala topped the charts with R89.2 million, reflecting the bank’s status as Africa’s largest by assets. Nedbank’s Jason Quinn, who took over as CEO in 2024, earned less, though exact figures for 2024 are unavailable. FirstRand’s Mary Vilakazi, the first Black female CEO of Africa’s biggest bank by market value, likely earned in the R40–60 million range, based on her predecessor’s pay.
These numbers reveal a hierarchy. Standard Bank, with its massive footprint, pays the most. Absa, aiming to compete, offers competitive but lower packages. Nedbank and FirstRand fall in between, balancing cost with ambition. What’s clear is that CEO pay isn’t arbitrary—it’s tied to market size, performance, and strategic goals. Absa’s decision to hire Fihla suggests they’re willing to pay a premium for proven leadership, especially as they expand into markets like Dubai.
Broader Implications: Inequality and Regulation
Fihla’s salary isn’t just about Absa—it’s a symptom of deeper issues. South Africa’s Gini coefficient, a measure of income inequality, was 0.63 in 2022, among the highest globally. CEO pay packets like Fihla’s, while market-driven, widen this gap. Shareholder activism is growing, with groups like Just Share pushing for caps on executive pay. In 2024, Absa faced criticism from the Public Investment Corporation for appointing Rautenbach, a White male, after Daniel Mminele’s exit, highlighting diversity concerns alongside pay.
Regulation is another factor. The Companies Act requires South African firms to disclose executive pay, but there’s no cap. Globally, countries like Norway impose higher taxes on excessive bonuses, a model South Africa could explore. Meanwhile, Absa’s expansion into Dubai and focus on economic growth (forecast at 2.1% for 2025) signal ambition, but also pressure to justify high salaries with results.
100 Most Profitable Businesses in South Africa
Absa CEO’s Salary: A Call to Action
Absa CEO’s salary of R67.2 million paycheck at Standard Bank sets a high bar for his Absa CEO’s salary. It’s a reminder of the value top talent brings—and the scrutiny it attracts. Businesses can learn from Absa’s bold hire: pay for performance, benchmark smartly, and communicate transparently. Professionals can take note too—quantify your worth and negotiate fearlessly. But the bigger challenge is balancing reward with responsibility. As South Africa grapples with inequality, leaders like Fihla must deliver results that justify their pay, not just to shareholders, but to society.
Get the latest entrepreneurial success stories, expert tips, and exclusive updates delivered straight to your inbox — Sign up for Entrepreneur Hub SA’s newsletter today!
