Bank chairmen earn the highest salaries in the entire market - Photo: QUANG DINH
According to a report by Fiingroup, the average income of chairpersons of the boards of directors of listed companies in 2023 was 1.7 billion VND per person.
Banks and financial services (primarily securities firms) have the highest average income for their board chairmen, due to the unique role these leaders play in management.
Which chairman earns the highest income in the market?
More detailed data shows that the income of chairmen of the board of directors at banks, securities companies, and some businesses such as PNJ, Vinhomes, Nam Long, NTP, REE… is higher than the majority.
This factor may be due to the fact that, in addition to being large, leading companies in their respective industries, data sources observe that the chairman of the board also participates in some operational tasks and shares some of the responsibilities of an executive position such as CEO.
According to detailed statistics, the average income of a chairman in the banking sector was 4.1 billion VND in 2023. Meanwhile, the financial services sector ranked second with 2.9 billion VND.
The oil and gas industry, once known for its good employee benefits, ranked third, with 2.2 billion VND. Sharing this ranking were the basic resources and real estate sectors.
However, it should be noted that the income of the chairman of the board position does not include the value of bonus shares or shares under an executive stock option program (ESOP).
Data: Fiingroup
Looking at the data, it can be seen that the chairman of the board of directors of Sacombank receives the highest income in the banking industry and ranks second in the market, after only the chairman of PNJ, Cao Thi Ngoc Dung.
What is the income of the chairmen of state-owned banks?
According to statistics compiled by Tuoi Tre Online based on audited financial reports for 2023, many other bank chairmen also earned billions of dong.
Among the "Big 4" banks, Mr. Phan Duc Tu - Chairman of BIDV - received remuneration of over 2.48 billion VND in 2023. Similarly, the remuneration of the Chairman of VietinBank was also at the same level of 2.48 billion VND.
Meanwhile, Mr. Pham Quang Dung - former chairman of Vietcombank - only received a remuneration of 1.63 billion VND in 2023.
Last year, Mr. Ngo Chi Dung - chairman of VPBank - received a remuneration of 3.36 billion VND, unchanged from the previous year.
Meanwhile, at MBBank, Mr. Luu Trung Thai was appointed in April 2023. Financial reports reveal that Mr. Thai received remuneration of over 1.98 billion VND last year.
Data: Financial Statements/TTO
In many other banks, financial reports do not detail the income of each member of the board of directors or executive management, only stating the total remuneration paid.
Notably, survey data on executive income also indicates that state-owned enterprises (where the state owns between 25% and less than 51% of total equity) have the highest return on equity (ROE), but the average income of the chairman of the board (as well as the CEO) is 16%-20% lower than the market average.
Experts from Fiingroup recommend narrowing the income gap between executive positions such as general director in state-owned enterprises and private enterprises, given that business performance does not differ significantly.
This is considered a very important solution for reforming the state-owned enterprise sector.
Furthermore, with the current regulations separating the roles of the chairman of the board and the CEO, businesses can consider designing and building compensation policies and structures for these key positions based on their responsibilities, scope of work, and performance metrics.
These metrics may include profit margins, capital efficiency, core/sustainable income growth, along with current plan completion targets.
Source: https://tuoitre.vn/he-lo-thu-nhap-cua-loat-chu-tich-doanh-nghiep-niem-yet-ai-cao-nhat-2024090512144158.htm
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