A CEO of a Kenyan bank earns 339 times the amount Kenyans earning a minimum wage take home at the end of the month, broadening the gap between the mwananchi and the sector CEO after the latter took home 326 times the salary that the average Kenyan took home in the financial year 2018/2019.
An analysis of listed firms’ executive and non-executive directors’ remuneration by audit and financial services firm PricewaterhouseCoopers (PwC) shows that the average monthly basic salary paid out to CEOs of Kenyan banks in the financial year 2019/2020 stood at Ksh3.6 million.
Trading economics expects the minimum wage in Kenya to hit Ksh13,572 by the end of 2020, by that assertion, PwC’s calculation conflicts with available data.
Besides the fat salary, the CEOs were also treated to a monthly allowance of Ksh959,691 in addition to 54.6 million annual incentives.
On the other hand, Chief Financial Officers (CFOs) took home an average of Ksh2.3 million in monthly basic salaries on top of a monthly allowance of Ksh801,500 and Ksh21.39 million in annual incentives.
Board meetings were also lucrative as board chairpersons earned Ksh110,578 as allowances for every sitting and another Ksh3.14 million in annual fees.
Other Non- Executive Directors earned Ksh82,450 as allowances for every board meeting they attended and a Ksh1 million annual fee.
Committee chairpersons earned Ksh73,369 as allowances for every meeting as committee members pocketed Ksh60,541 for similar efforts.
The past decade has seen the expansion of boardroom focus and increased pressure on board members with more attention paid, not just to the strategic role boards play but also on the need for disclosure on how these boards are remunerated.
The need for this disclosure has been driven, in part, by regulatory requirements and also as a result of the need to showcase good governance and best practice
CEOs on Fat Salaries
Co-op Bank Chief Executive Gideon Muriuki is the best-compensated executive in Kenya. In 2018, the last year whose financial results are publicly available, the corporate titan earned Ksh376.4 million comprising a bonus of Ksh271 million and a salary of Ksh105.4 million.
During the period under review, Absa paid its CEO Jeremy Awori Ksh101 million which included Ksh34 million in basic salary, Ksh29.7 million in benefits and Ksh3.4 million in pension payments.