His compensation is seen as a reflection of Standard Bank’s relatively gigantic stature on the African continent.
Mr Oduor-Otieno currently runs a private consultancy business and is also a board member of cigarette manufacturer BAT Kenya.
Former KCB #ticker:KCB chief executive Martin Oduor-Otieno was paid an equivalent of Sh1.47 million per month last year for his role as a non-executive director of South Africa’s Standard Bank Group, dwarfing compensation packages of most Nairobi Securities Exchange-listed firms.
The continent’s largest bank disclosed the compensation of its board of directors in its latest annual report, which shows that Mr Oduor-Otieno earned a total of R2.2 million (Sh17.7 million) in the year ended December 2016.
Total non-executive directors’ pay at most of Kenya’s publicly traded companies, including BAT Kenya #ticker:BAT, stand at less than Sh17 million per year, with the exception including Safaricom #ticker:SCOM and Equity Group #ticker:EQTY, which paid Sh21.3 million and Sh47 million respectively according to the latest available disclosures.
His compensation, which surpasses the pay of chief executives of most Kenyan medium-sized firms, is seen as a reflection of Standard Bank’s relatively gigantic stature on the African continent.
Total assets of the Johannesburg Stock Exchange-listed firm stand at Sh15.2 trillion or twice the size of Kenya’s economy.
Its net earnings of Sh179.7 billion in the year ended December are 3.7 times that of Safaricom –the most profitable firm in East Africa.
Standard Bank operates in 20 countries in Africa, including Kenya, where it has direct and indirect interests in Stanbic Holdings Plc #ticker:CFC and Liberty Kenya Holdings #ticker:CFCI.
It also owns a London-based securities trading company in a joint venture with Industrial and Commercial Bank of China.
Standard Bank says it pays its directors competitive fees as viewed against remuneration of other South African and international firms.
“In determining the fees for non-executive directors, the majority of whom are also members of board committees, remuneration committee considers the extent and nature of their responsibilities,” the lender said in the report.
“It also considers market conditions and reviews comparative remuneration offered by other major South African and international banks and top South African listed companies.”
The directors are paid a single annual fee for their services to the group, the bank and its subsidiaries.
Mr Oduor-Otieno, for instance, earned R991,000 (Sh7.7 million) in the review period for service as a director of the group and a similar amount for service as a director of the firm’s subsidiaries.
He was also paid R293,000 (Sh2.2 million) for serving in the group’s committees where directors “spend a significant amount of time on in-depth analysis of matters relevant to the group’s performance and regulatory requirements.”
Mr Oduor-Otieno serves in three committees –audit, ethics and risk. Standard Bank appointed him as a non-executive director in January last year to tap his extensive experience in the financial services industry.
The former KCB chief’s local knowledge and contacts also come handy for Standard Bank that has emerged as one of the foremost financiers of large-scale power and infrastructure projects.
Mr Oduor-Otieno is widely known for his successful tenure at KCB which he steered to a dominant position in terms of size and absolute profits.
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