KCB Group chief executive officer Joshua Oigara (pictured) earned KSh299.1 million (UShs10.62bn) in salary, bonus and allowances in 2019, a year when Kenya’s biggest bank by assets announced a record net profit, Daily Nation reports.
Mr Oigara’s compensation increased by 9.6 percent or the equivalent of KSh26.2 million (UShs 930.69m) from KSh272.9 in the previous year on the back of a higher salary of KSh72 million that went up 5.9 percent from KSh68 million in 2018.
Mr Oigara, 45, whose renewable term of five years ends in 2023, was also paid deferred compensation of KSh48.4 million as bonus last year and a gratuity of Sh21.6 million.
During the period, he earned a bonus of KSh145.3 million, which dropped 19.2 percent from the KSh179.9 million bonus he was paid in 2018.
Mr Oigara’s non-cash benefits that include medical insurance, club memberships and professional indemnity dropped to KSh300,000 last year from KSh1 million the previous year.
KCB ties bonus payments to its executive directors’ achievement of multiple metrics, including the profitability of the group.
“During the year 2019, there was a KSh12.8 million adjustment to the basic pay of the two Executive Directors sitting on the board with effect from 1 January, 2019,” said the bank in its annual report.
At the current rate, Mr Oigara’s pay amounts to KSh24.9 million per month and is 95.1 times the average KSh3.14 million paid annually to KCB’s 6,202 permanent employees.
Like Mr Oigara’s, KCB group chief financial officer Lawrence Kimathi’s pay rose by 12.84 percent from KSh81.8 million to KSh92.3 million last year, boosted mainly by an increase in salary, gratuity and a deferred bonus.
Mr Kimathi’s basic pay also went up by KSh8.8 million to KSh40.8 million. The new raises will cement the duo’s position among the highest-paid executives in the country.
Their higher earnings last year were in tandem with KCB’s 4.8 percent growth in profit to KSh25.1 billion from KSh23.99 billion the previous year.