Companies

EABL shareholders to vote on proposal for directors pay rise

EABL

A section of the East African Breweries Limited plant in Ruaraka, Nairobi. FILE PHOTO | NMG

East African Breweries Limited (EABL) #ticker:EABL is set to raise fees paid to independent non-executive directors by more than half in the current financial year.

The pay raise proposal will be part of resolutions to be presented to shareholders at an annual meeting on September 21.

“To approve an increase in the directors’ fees to a total of approximately Sh20.1 million for all independent non-executive directors together,” reads the proposal.

The Nairobi Securities Exchange-listed firm paid all its directors —including executives— a fee of Sh13.5 million in the year ended June 2016.
The proposal means the compensation will rise 49 per cent.

The compensation of the executive directors is reported separately.

EABL’s move to increase the directors pay could signal an expansion of the board, an increase in number of meetings or a reward for existing members. The company currently lists 11 directors, three of who will be seeking re-election at the meeting.

READ: EABL ranks top in Africa with more women in boardroom

ALSO READ: EABL to set up Sh15 billion brewery in Kisumu

The brewer says its board meets at least once every quarter, with additional meetings scheduled to discuss strategy. Additional meetings are held whenever deemed necessary.

The brewer’s net earnings in the year ended June dropped to Sh8.5 billion from Sh10.2 billion the year before.

The profit dip was largely caused by the absence of a one-time gain of Sh2.2 billion recorded from assets sold in the previous year.

EABL has announced plans to build a new plant in Kisumu to produce its Senator brand of beer. The multi-billion shilling factory, expected to be commissioned by 2019, will be funded through debt. The company plans to structure a financing deal with a consortium of local banks.