KCB Group CEO Joshua Oigara. FILE PHOTO | NMG KCB Group #ticker:KCB Chief Executive Officer Joshua Oigara has earned Sh1.05 billion in the last four years, benefitting from the performance-based pay that has cemented his position as Kenya’s most rewarded executive.
Regulatory filings by KCB, which is Kenya’s biggest bank by assets and most profitable lender, show that Mr Oigara has earned 63 percent of this money in form of performance-related bonuses, equivalent to Sh667.6 million between 2016 and 2019.
KCB has been disclosing executives’ pay, including salaries, stock options and bonuses, in its annual report since July 2017 in line with the legal change that made it mandatory for listed companies to make directors’ pay public .
Mr Oigara, 45, whose renewable term of five years ends in 2023, earned Sh262 million in basic salary over the four years with the annual pay rising from Sh57 million in 2016 to Sh72 million last year, reflecting a 26.3 percent growth.
His allowances, such as house, car and telephone perks, over the four years totalled Sh60.5 million or Sh1.26 million per month, which is at par with the pay of a CEO serving a State owned firm like Kenya Power.
Mr Oigara was also paid Sh59.6 million in gratuity, and Sh2.3 million in non-cash benefits, which include medical insurance cover, club membership and professional indemnity cover.
“The KCB Group approach towards reward and recognition is to ensure that individuals are adequately compensated and recognised for their role towards the overall success of the groups’ business,” said the lender in its annual report for 2019.
“Executive directors’ performance is measured on the basis of a balanced scorecard… covering areas around financial performance, customer and stakeholder satisfaction human capital, culture, learning and growth and efficiency in internal business processes.”
The lender reckons that its management pay is also based on the market average obtained through a regional survey of executive compensation all the way to bonuses that are linked to a range of metrics such as return on equity. KCB, which also operates in neighbouring Uganda, Tanzania, Rwanda, Burundi and South Sudan, has returned double-digit profit growth for most of years since it hired Mr Oigara as CEO in 2013. The bank’s net profits rose 4.8 percent last year to Sh25.1 billion from Sh23.99 billion the previous year, and has risen from Sh19.7 billion in 2016.
This has translated to outsized compensation for Mr Oigara who has cemented his position among […]
