Details in KenolKobil's annual report show that the pay of executive directors fell to Sh62.2 million last year from Sh80.6 million a year earlier.
This comes in a year when the firm reported a loss of Sh6.2 billion, which is highest ever among firms listed at the Nairobi bourse.
KenolKobil top executives’ pay has dropped 22.8 per cent in a year that saw the oil marketer maintain a handsome share-based compensation for its CEO.
Details in the marketer’s annual report show that the pay of executive directors fell to Sh62.2 million last year from Sh80.6 million a year earlier. The report lists its executive directors over the two years as Jacob Segman (CEO and chairman) and Pat Lai (group finance director).
This means they shared a monthly package of Sh5.1 million, down from Sh6.71 million in 2011. This comes in a year when KenolKobil reported a loss of Sh6.2 billion, which is highest ever among firms listed at the Nairobi Securities Exchange (NSE).
But Mr Segman is still free to exercise an options agreement that entitles him to receive 20 million shares under an executive compensation plan currently worth Sh201 million, which makes him one of Kenya’s highest paid business managers.
KenolKobil shareholders approved the creation of 500 million shares, but the oil marketer is yet to distribute 360 million shares to investors after it issued 140 million stocks to its Employee Share Ownership Plan.
Mr Segman is entitled to four per cent of the new shares or 20 million stocks that were last year worth Sh250 million. The shares would make him the eighth largest investor in KenolKobil — Kenya’s largest company by revenues.
The firm is associated with former powerful Cabinet minister Nicholas Biwott. Its share at the NSE has shed 26.6 per cent in the past three months to the current price of Sh10.25, making it the worst performing stock on the bourse over the period.
The Business Daily failed to get a comment from Mr Segman as his mobile phone went unanswered. He also failed to respond to a text message on the matter.
The company’s loss of Sh6.2 billion reversed the net profit of Sh3.2 billion it posted in 2011 as high operating expenses, lower sales and foreign exchange losses took toll.
The firm said in a statement that its sales volumes and turnover went down 21 per cent and 13 per cent respectively last year.
This marks a poor season for investors in oil stocks since Total Kenya, Kenol’s chief rivals, also reported a bigger loss of Sh202 million compared to Sh71.4 million in 2011, mainly due to a settlement of a botched supply deal.
Unlike Kenol, Total paid a dividend of Sh0.20 a share, a move that has helped lift its share price 18.8 per cent in the past three months to trade at Sh17.
KenolKobil says it will reduce the order of fuel stocks, go slow on hedging contracts and sell undisclosed non-core assets to help reduce borrowing and loan costs expenses.
It is also keen will pursue fresh partnerships after Swiss firm Puma Energy dropped its bid to acquire a majority stake in the firm, scuttling the company’s growth ambitions.
