11.5 %increase in the rewards, salaries and benefits of senior management of 17 national banks in 2024

The members of the senior management in 17 national banks listed in the financial markets in the country obtained rewards, salaries, end of service and other benefits and compensation, at a value of one billion and 52 million and 892 thousand dirhams, for the performance of last year 2024, an increase of 11.5% compared to 2023, which recorded 943 million and 802 thousand dirhams, according to a monitoring conducted by «Emirates Today» of reality The announced financial statements, annual reports, and governance reports issued by the listed banks, at a time when the listed banks achieved annual profits approximately 80 billion dirhams for 2024, according to the announced financial results.

Growth and retreat

Abu Dhabi Commercial Bank has exported the banks list for grants and benefits in terms of value, as it recorded the provision of 145 million and 306 thousand dirhams, followed by Emirates NBD, which granted 145 million dirhams, while the first Abu Dhabi Bank came in third place with a value of 122 million dirhams.

At the level of the most growing banks annually in granting the advantages of senior management, Dubai Commercial Bank resulted in a growth of 118%, followed by Ras Al Khaimah National Bank with a growth rate of 39%, while Commercial International Bank recorded a growth rate in this item of 28%.

On the other hand, Sharjah Bank was the most retreating in granting rewards and benefits, with a change of “58%negative”, followed by the Emirates Islamic Bank in second place with a decline in “negative 4.5%”, then the Abu Dhabi Islamic Bank, which ranked third with a “negative 4.3%” decline.

Bank disclosure

According to the disclosure of Abu Dhabi Commercial Bank, the senior administration employees are intended for those who enjoy validity and responsibility for planning, directing and controlling the group’s activities, and they are members of the Board of Directors, CEO, and members of the Executive Management Committee.

The bank added in the Governance Report that these amounts are the rewards of senior management staff and the fees and expenses of the Board It is 145 million and 306 thousand dirhams.

According to clarification in its financial statements, Al -Mashreq Bank said: “The major administration employees are those individuals who enjoy powers and assume responsibilities for planning and directing the group’s activities, and monitoring them directly or indirectly.”

As for the first Abu Dhabi Bank, he said in a disclosure of it: “The parties are considered parties related to if they have the ability to control the other side, or have a fundamental impact on it when making financial or operational decisions, and the parties with the relevant shareholders include the main shareholders, the board of directors, and the senior administration employees of the group.”

According to the bank, senior management employees consist of members of the group’s executive committee who participate in the process of strategic planning and decision -making in the group.

The bank also said: “The Secretary of the Board of Directors annually conduct an annual evaluation of the council’s performance, which covers a number of points, including the organizational structure of the council, its goals, procedures related to the council’s meetings, responsibilities and performance of the council, and finally the council interacted with the higher management of the bank.”

Performance and legislation

In the same context, Sharjah Bank said in a disclosure of it within the annual report: “The CEO determines the compensation of the members of the senior management team based on performance, under the supervision of the Council’s Committee for Compensation, rewards and nominations, and executives are also motivated directly to adhere to the concept of sustainability, to integrate the principles of environmental and social governance and corporate governance in the process of decision -making and operational results.”

As for Dubai Commercial Bank, he said in a disclosure: “The bank is keen that the rewards granted to the members of the Board of Directors are compatible with the legislation and regulations in force, as well as taking into account the level of commitment and responsibility that the members bear, in addition to achieving the specified goals, to ensure the appropriate rewards with the long -term returns due to the shareholders.”

According to the valid regulatory requirements, members of the Board of Directors receive fixed rewards only, and include a fixed annual amount, in addition to recovering the costs directly related to the performance of their responsibilities, so that the reward of the members of the Board of Directors does not exceed 10% of the net profits, with the exception of rewards or any incentive systems that depend on the bank’s performance.

According to the banks ’disclosure, the payment of the rewards of the members of the Board of Directors is not carried out until the approval of the public societies, which were held by these banks starting last March.

Responsibilities and risks

Commenting, the expert in the financial markets, a co -teaching member at Hamdan Bin Mohammed Smart University, Dr. Hammoud Abdullah Al -Yassi, told «Emirates Today»: “The banks listed in the financial markets are profitable institutions, and according to the law, members of the boards of directors can be granted annual rewards related to the performance that does not exceed 10% of the achieved profits.”

Al -Yassi added: “He meets the rewards and benefits that members of the boards of directors and senior executives in banks meet great responsibilities, bear risks, and accountable for performance in general in front of shareholders and public societies.

He continued: «The banks are also obligated to issue reports of governance that guarantee transparency, and the failure of interests or their interference, in addition to the audited budgets, as well as the requirement of the approval of public associations to the percentages of rewards granted, benefits, and others.

Al -Yassi noted that the compensation and advantages of senior and executive management also differ from one bank to another, according to its size, and the annual profits, revenues for shareholders, and distributions of the shareholders, pointing out that there are members of the banking boards of directors who have additional tasks, such as chairing some committees, and it is natural that this will be an additional material.

Al -Yassi said: «There are in general joint stock management councils in general, including banks listed, a diversity in members of the boards of directors, between independent, executive, and non -executive, in a way that guarantees freedom to make decisions, develop internal policies, and other matters that achieve the best performance and the largest return.”

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