Executive Compensation Trends: A Closer Look at Ethiopian Private Banks

Over the past five years, the compensation for executive management members in Ethiopian private banks has exhibited notable trends and variations, clearly indicating a rise in remuneration. This increase in management compensation across most banks reflects the growing complexity and demands of managing financial institutions in a constantly evolving economic environment.

Competitive compensation packages are crucial for attracting and retaining skilled management, which is essential for navigating the complexities of the banking sector. As banks continue to grow and evolve, management compensation will likely remain a critical factor in their strategic planning and operational success.

Top 10 banks by average compensation for their key management employees over the past five years (FY2018/19 to 2022/23) in millions of Birr