Connect with us

Executive Decision

Standard Group CEO resignation causes tension

The move has thrown the media house into turmoil once again and forced the owners back to the drawing board

Published

on

Sam Shollei: Has turned around Standard Group from a loss to profitability.

Standard Group chief executive Sam Shollei has reportedly resigned in what appears to be the culmination of a fallout with some key people in the company’s board.

Mr Shollei is understood to have quit under pressure from Gideon Moi, one of the principal shareholders at Standard representing the interests of Daniel arap Moi family, its main shareholder. His exit comes just eight months after the board gave him three more years at the helm.

The sudden move has thrown the media house into turmoil once again and taken the owners back to the drawing board to get a new CEO.

Inside sources at Standard say the company’s board will be meeting tomorrow to endorse his exit. “We don’t know what’s going on, but what I have heard is that Gideon Moi is the one behind Shollei’s reisignation,” said a senior journalist at the Standard.

RELATED: After rebooting, Shollei says Standard focused on growing revenues

It is not clear what caused the fallout, especially given the glowing words the board heaped on Shollei while renewing his contract in December. “The board is pleased to retain Mr Shollei for a further three years to continue the Group’s ongoing business renewal programme and to lead the organization to greater heights of success as we implement the new corporate strategy,” said Shaun Zambuni, a member of the board speaking on behalf of the chairman.

But the tide appears to have turned drastically over the past eight months. Mr Shollei, who was headhunted from Nation Media Group in 2012, has been working to re-energise Kenya’s second biggest media company, where he executed a painful retrenchment to cut costs and grow profits.

During his reign profits fell, as revenues shrank due to a drop in ad incomes.

Some blame poor performance on an expensive payroll, which was trimmed in late 2015, pushing out some of its longest serving journalists.

Yet from a loss of Ksh289.6 million in 2015, Standard Group swung back into profit in 2016, boosted largely by falling operating costs and slightly higher revenues. It made a net profit of Ksh198.5 million, an impressive 169% growth that shook the media industry and even the Nairobi Securities Exchange.

ALSO SEE: Standard to pay Miguna Miguna millions for defamation

With such a turnaround, someone would have thought Shollei had vindicated his extended presence at Standard and generous expenditure on new products such as Radio Maisha, KTN News and The Nairobian. The Standard CEO’s seat is always hot and Shollei’s exit confirms just how family and political interests often triumph over corporate strategy at the company.

Business Today is the leading independent online business website in Kenya. Started in 2012 by a veteran business journalist, it has a huge following both in Kenya and abroad. It covers various business and related issues. Email editor at: [email protected]

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News Updates

Opinion57 mins ago

Align Kenya’s political system with global standards

There is need to ensure that our system is in line with international best practice especially as they relate to...

NEWS2 hours ago

Kitui County embroiled in models ‘sex scandal’

At least 16 models have dismissed the crowning of four winners at a beauty pageant held last month

NEWS2 hours ago

Kenya not yet fully a free democracy, new report says

While a full report on the country's performance is not yet available online, a summary of the report notes that...

NEWS3 hours ago

Family of five perishes in Juja inferno

Police said a woman, three children - all aged below 10 years, and a man were found early Tuesday morning

NEWS4 hours ago

Americans urged to support conservation

Conservation of nature in many countries in Africa contributes significantly to sustainable rural community livelihoods

NEWS21 hours ago

It’s business as usual, Mike Sonko says

He dismissed reports that Igathe called it quits last Friday following disagreements arising from implementation of key projects and award...

NEWS23 hours ago

Police mum on theft of State House furniture

Nakuru OCPD Samuel Obara told the press that only police headquarters in Nairobi or State House spokesman Manoah Esipisu can...

NEWS23 hours ago

Uncertain future for 100 police officers recalled from NTSA

The Director of Personnel at Vigilance House, the Kenya Police Service nerve centre, Boniface Maingi asked the commanders to send...

Person of Interest4 days ago

Fred Matiang’i: Second most powerful man after President Uhuru

The no-nonsense Cabinet Secretary has become Uhuru Kenyatta's Mr Fix It in government affairs in the processing getting big ministries...

Politics4 days ago

Jubilee script goes haywire as Igathe quits

Details on boardroom rifts started emerging when Sonko shared screenshots of private Whatsapp conversations with his deputy as he fought...

Advertisement

Trending