Saudi bank executives saw their average compensation decline 2.7% to SAR4.4mn ($1.17mn) in 2024 despite record sector profits, the Al Eqtisadiah newspaper reported on February 20.

Total executive compensation reached SAR1bn for 228 executives last year, compared to SAR961.6mn for 213 executives in 2023, according to the newspaper's financial analysis unit.

The decline came primarily from reduced bonuses and incentives, including stock grants, even as Saudi banks posted record profits of SAR79.6bn, up 14% year-on-year despite deposit growth challenges.

Executive pay packages, which include base salary and incentives, ranged from SAR2.8mn to SAR6.7mn annually across the sector. Saudi National Bank (SNB) offered the highest compensation, while Alinma Bank provided the lowest average executive pay.

Bank BCF recorded the highest growth in executive compensation at 15%, reaching SAR4.3mn compared to SAR3.7mn in 2023, despite underperforming with only 7.6% profit growth against the sector's 14%.

SNB, while remaining the most generous, saw average executive compensation fall 18.7% due to reduced incentives, matching its sector-low profit growth of 5.9%.

Non-executive bank employees earned an average monthly salary of SAR24,400 ($6,507), up from SAR20,700 in 2023. Risk management staff commanded the highest salaries at SAR51,300 monthly, followed by compliance staff at SAR36,900, while other employees averaged SAR18,900.

The sector employed 73,800 people by year-end, up 3.6% from 2023, despite continued branch reductions for the fifth consecutive year.