Kenya Airways chief executive Sebastian Mikosz (left) and board chairman Michael Joseph during a media briefing in Nairobi on September 21, 2017. PHOTO | SALATON NJAU | NMG Covid-19 has added a further complication to the business given that Kenya on March 22 banned cross-border flights in order to contain the spread of coronavirus.
Mr Mikosz took over from Mr Ngunze when the airline had made Sh26.1 billion loss in 2016, followed by a loss of Sh10.2 billion the following year.
The pay of former Kenya Airways chief executive officer Sebastian Mikosz jumped 46 per cent to Sh91.98 million last year as the cash-strapped airline gave him special compensation for leaving office before the end of his contract.
Mr Mikosz’s exit payout, which is disclosed in the airline’s latest annual report, marks the second time in a row that KQ is cutting short the contract of an executive and having to incur millions of shillings in compensation for loss of office.
SH29.02 MILLION
Kenya Airways discloses that it paid the Polish national Sh11.12 million as compensation for loss of office in addition to Sh40.06 million basic salary, Sh29.02 million allowances and non-cash benefits amounting to Sh10.98 million during the review period.
The disclosure means that the former chief executive was forced out, contrary to last year communication by the airline, which had indicated that Mr Mikosz had resigned ahead of the end of his tenure in the country because of “personal reasons.”
“We are grateful to Sebastian for steering the airline through the headwinds and ensuring the airline continued to pursue its strategy. We wish him well in his future endeavours,” chairman Michael Joseph says in the report.
The latest remuneration is in contrast with 2018 when Mr Mikosz received Sh62.89 million comprising Sh42 million salary, Sh16.43 million allowances and non-cash benefits amounting to Sh4.44 million.
The additional payout to Mikosz was a key contributor to the rise in total compensation to the KQ directors by 32.1 per cent to Sh124 million from ShSh93.9 million. This was despite deteriorating performance.
POSTING LOSSES Mr Mikosz was hired on June 1, 2017 with the promise of turning around the airline’s fortunes that had been posting losses since in 2012. His three-year contract was to end at the beginning of this month.However, he left at the end of December last year with five months remaining on his contract as the board turned to its subsidiary Jambojet from […]
