The banking sector is one of the most profitable in the country where a majority of the blue chip companies in the industry Registered strong performance at a time when Firms in other sectors Registered huge losses.
The excellent performance saw top-tier banks announcing higher dividend payouts for the last year as investors smiled all the east to the Bank.
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equity back had to part with KSH 213.64 million to pay its chief executive officer James Mwangi for the year 2022 up from KSH 143.02 million he got the previous financial Period.
The pay includes bonuses worth KSH 53 million that are paid at the end of the financial year following a 15 percent rise in profits to KSH 41.1 billion.
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Besides the salary, James Mwangi who is one of the shareholders in the Nairobi stock exchange listed firm received dividends worth KSH 600 million for the last financial year from his investments.
James Mwangi is credited for the growth of the bank which Started as a building society in the 90s.
Ever since he took over, the bank has registered tremendous growth having established a branch network that covers East and Central Africa.
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Highest Paid CEOS in Africa
The top earners:
1. Gideon Muriuki
Co-operative Bank CEO Gideon Muriuki was the highest earner during the period under review.
Muriuki took home Sh 397.1 million in direct compensation. His fat pay came after he steered the lender to record a net profit of Sh 16.5 billion.
According to Co-op Bank’s 2021 annual report, the lender progressively improved profitability from a huge loss of Sh 2.3 billion in 2000 to Sh 16.5 billion in 2021.
Under Muriuki’s leadership, its asset base has increased from Sh 22.3 billion to Sh 580 billion.
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2. Joshua Oigara
The former Kenya Commercial Bank (KCB) CEO was placed second behind Muriuki with a compensation of Sh368.5 million. This was a significant increase from the Sh 252.3 million he received in 2020.
Oigara received Sh76.4 million in annual pay, but a bonus of Sh 241.1 million saw his pay rise by 217%.
“Executive directors are entitled to performance-based bonus pay. According to the bonus policy, 75 percent of the approved bonus is paid within 12 months after the year-end,” the bank said in a statement.
KCB registered a record 74% rise in profit after tax for the full year ending December 2021 to KSh 34.2 billion.
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3. James Mwangi
Equity Group Holdings Ltd managing director and CEO James Mwangi’s pay fell from Sh 278.53 million in 2020 to Sh 143.02 million in 2021.
The cut was attributed to the absence of the gratuity he received in 2020.
However, Mwangi’s basic pay increased from Sh 56.73 million to Sh 78 million, translating to an average monthly pay of Sh 6.5 million.
Under Mwangi’s leadership, Equity reported a 99% rise in its full-year 2021 net profit to hit KSh 40.1 billion.
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4. Kariuki Ngari
The Standard Chartered Bank of Kenya boss saw his earnings jump from Sh 90.64 million in 2021 to Sh 115.63 million in 2021. Ngari’s pay was boosted by a huge bonus of Sh 35.94 million.
Ngari’s annual basic pay during the period was Sh 45.37 million ( Sh 3.78 million monthly).
Stanchart’s profit after tax soared by 67 percent in 2021 from Sh 5.4 billion in the previous financial year to Sh 9 billion.
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5. Jeremy Awori
Absa Bank Kenya PLC CEO Jeremy Awori saw his pay increase by 28 percent. He took home Sh 106.78 million in 2021 compared to Sh 83.31 million in the preceding year. His pay was inclusive of a Sh 23 million cash bonus.
Awori guided ABSA to record a 161 percent increase in net profit in 2021 to Sh 10.8 billion.
“The remuneration of executive directors consists of fixed and variable components that are designed to ensure a substantial portion of the remuneration package is linked to the achievement of the company’s strategic objectives, the lender stated in its report.
As a result, the lender started paying dividends again with a payout of Sh 1.1 per share. The dividend amounted to Sh 5.9 billion
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