Centum CEO takes pay cut to earn Sh177.5m

Centum CEO takes pay cut to earn Sh177.5m

Centum Investment chief executive James Mworia was corporate Kenya’s fourth best-paid manager last year with an annual compensation of Sh177.5 million or an equivalent Sh14.7 million per month.

The Centum annual report released Monday shows Mr Mworia took a Sh41.7 million pay cut after getting a lower bonus cheque.

The pay places Mr Mworia behind three of his peers who lead the Nairobi Securities Exchange-listed firms — telecoms operator Safaricom, KCB and Co-op Bank.

The 40-year-old Centum boss, who has for several years now executed a generous bonus scheme that rewards employees for growth in shareholder funds, saw his overall earnings dip after a cut in his perks which dislodges him from the apex as Kenya’s best paid CEO.

Sh42.4m bonus

Centum paid Mr Mworia Sh42.3 million in salaries in the period, same as a year earlier, and Sh132 million in form of a bonus.

The bonus was 24 per cent lower, compared to the previous year’s Sh173.7 million.

The bonus payment for the financial year ended March 2018 is linked to the performance of the previous year, as per the firm’s policy of paying out declared bonuses in the subsequent financial year.

“The bulk of our remuneration is a bonus, which is linked to realised gains. This means in the years which we have high realised gains you have a high bonus. In the years when the realised gains are low the bonus comes down.

"The results we will announce for the year ended March 2019 I actually have no bonus as it came to zero as we did not achieve the 15 per cent target. This is okay because my remuneration has to correlate to the performance of the company,” said Mr Mworia Monday in an interview.

Centum’s total performance bonus for its staff, including executive directors and senior managers, dropped by 19.54 per cent to Sh306.3 million from Sh380.7 million a year earlier.Salaries for the top managers also dropped 9.03 per cent in the period to Sh203 million from Sh223.2 million a year earlier.“The remuneration of executive directors is determined based on remuneration benchmarks in the industry, prevailing market conditions as well as the company’s performance and profitability,” says Centum in the report.“In the financial year ended March 31, 2018, the performance hurdle rate… was not met and accordingly, no bonus pool has been accrued in relation to the year then ended.” Hefty bonus Mr Mworia had previously enjoyed a hefty performance bonus, which […]

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