Non-executive directors of banks in Nigeria are poorly paid, a survey conducted by the Financial Institutions Training Centre (FITC) for Bank Directors Association of Nigeria (BDAN), has revealed.

The survey was commissioned by BDAN to develop a remuneration framework for non-executive directors of banks (NEDs) in Nigeria.

Presenting the report at a business luncheon organised by the Association for banks’ chairmen and send off party for retired council members, FITC Managing Director, Dr. (Mrs.) Lucy Newman said, “From FITC findings, remuneration payable to the NEDs of banks are mostly fixed by each bank. This is probably a reason for the distinct concern among the respondents, that their remuneration be increased.”

BDAN President, Olor’ogun Sonny Kuku while presenting the report of the survey to banks’ chairmen said, “It is very clear that bank directors are very poorly remunerated, especially for the level of work they do.”

He said the report of the survey would be sent to all the banks through their chairmen, the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), with the hope that it would be basis for determining directors’ remuneration in the banking industry.

Receiving the report on behalf of banks’ chairmen, Chairman, Diamond Bank Plc, and the Obi of Onitsha, Igwe Nnaemeka Achebe, said that he agrees with the findings of the report that directors are underpaid and overworked. “I know how much time directors spend to do the work. I can confirm that from personal experience”, he said.

The luncheon was attended by past council members of the Association and key banking personalities, including Chief Ferdinand Alabraba, former Chairman of UBA and immediate past President of BDAN, Mrs Moronkeji Onasanya, former Chairman, Skye Bank and past president of BDAN,   and Chief John Odeyemi, former Chairman Ecobank PLC, past vice president of BDAN and Past President Nigeria Association of Chambers of Commerce, Industries, Mine and Agriculture (NACCIMA).

Others are Chairman, Zenith Bank Plc, Sir. Steve Omojafor, Chairman, UBA, Chief Israel Ogbue, Chairman, Diamond Bank Plc, and the Obi of Onitsha, HRM Igwe Nnaemeka A. Achebe   and Chief Bolarinde, chairman, Wema Bank.

In addition to the presentation of the survey report, the luncheon featured the launching of the official newsletter of the Association by the immediate past President of BDAN, Chief Ferdinand Alabraba.

Banks chairmen and stakeholders at the luncheon commended the findings of the survey as a laudable contribution to the banking industry in the country.

Former Managing Director, FITC, Dr. Oladimeji Alo commended the report saying that participants at a seminar for directors had once suggested a benchmark for what the fees of non-executive directors of banks should be and we tried to index it at that time with the pay of chief executives offices and executive directors, and that it should be based on time commitment of directors to the job.

Former Vice President, BDAN, Chief John Odeyemi also affirmed the findings of the report, saying the duties of banks’ directors are huge, and such enormous duty should not be compensated with small remuneration. He charged banks’ chairmen to use the survey effectively because when bank directors are well remunerated, Nigeria and the banking industry would be better for it.’’