Revealing the 'huge' salaries of a series of bank leaders in Vietnam

Techcombank CEO has the highest income among bank leaders in Vietnam (illustrative photo)

In its recently released financial report, Techcombank said that in 2024 it will pay a salary of VND25.6 billion to General Director Jens Lottner, an increase of VND1.5 billion compared to 2023. On average, the German businessman receives more than VND2 billion per month, the highest among bank leaders in Vietnam.

The salary of the head of the Techcombank executive board is more than 43 times the average income of employees. Last year, each employee working at this bank received an average of 49 million VND/month.

In addition to his salary, Mr. Jens Lottner was also awarded 439,000 preferential shares offered by Techcombank to personnel “leading and implementing the bank’s strategy” in the second half of last year. The offering price at that time was VND10,000, about half the market price.

The income of Techcombank's leaders and employees both increased sharply, continuing to lead the industry when they just reported a pre-tax profit increase of more than 20%, to VND 27,538 billion and exceeding the target by about 2%.

At other leading private banks, the salary of the head of the executive board ranges from 10 to 13 billion VND a year.

Typically at Sacombank, CEO Nguyen Duc Thach Diem will receive a salary after tax of VND12.9 billion in 2024, or about VND1.1 billion/month. Because she also holds the position of permanent vice chairwoman of the bank's Board of Directors, she will receive an additional salary of VND1.8 billion.

According to the financial report, Sacombank paid nearly VND89 billion in salary and bonuses to members of the executive board, a sharp decrease compared to VND102 billion the previous year. The average monthly income of each key employee at the bank and its subsidiaries is VND260 million.

For the Board of Directors and the Supervisory Board, the total remuneration paid was more than VND70 billion. This figure is lower than the budget previously approved by the Sacombank General Meeting of Shareholders, which is 1% of after-tax profit, or about VND127 billion. Mr. Duong Cong Minh, Chairman of the Board of Directors, received the highest remuneration of nearly VND8.8 billion.

At ACB – the bank that just reported a record pre-tax profit of over VND21,000 billion, the total salary and bonus of the board of directors last year dropped sharply from VND100 billion to VND73 billion. However, the income of Mr. Tu Tien Phat, CEO of this bank, still increased by about 15% to VND11.5 billion.

ACB is one of the few banks with a large gap between salaries and average monthly income of employees. On average, ACB employees receive a salary of 14 million VND/month, but thanks to bonuses, their income is up to 38 million VND.

VPBank CEO Nguyen Duc Vinh's income does not fluctuate much, at 11.3 billion VND/year, while Chairman of the Board of Directors Ngo Chi Dung receives a salary of 3.36 billion VND/year.

At OCB, Mr. Pham Hong Hai – who was recently appointed as the bank's acting general director from May 2024 – received a salary of VND10.4 billion. In the appointment announcement, OCB said that "Mr. Hai is the best candidate for this important position" after a period of searching. The benefits he receives are about 4 times the salary of the bank's deputy general director.

At smaller private banks, CEOs earn between VND2.5 billion and VND5 billion. However, this figure is still significantly higher than the salaries of leaders at state-owned banks. As a result, the income gap between leaders and employees at state-owned banks is significantly narrower than in the private sector.

For example, at BIDV, the bank with the largest assets in the system, Mr. Le Ngoc Lam, General Director and Member of the Board of Directors, receives 2.3 billion VND/year, equivalent to 194 million VND/month. Meanwhile, each BIDV employee has an average monthly income of approximately 37 million VND.

Similarly, at Vietinbank, CEO Nguyen Tran Manh Trung earns about 160 million VND/month, while employees receive 38 million VND.

TB (summary)

Source: https://baohaiduong.vn/he-lo-muc-luong-khung-cua-loat-lanh-dao-ngan-hang-tai-viet-nam-408555.html