Equity Bank Group #ticker:EQTY left the pay of chief executive James Mwangi unchanged at a total of Sh60.4 million last year when its net profit jumped by five percent to Sh19.8 billion for the year ending December 2018.
The bank, Kenya’s second largest by assets, says Mr Mwangi was not paid a bonus for 2018 but earned a salary of Sh56.73 million or Sh4.72 million per month and an allowance of Sh3.744 million in the year ended December, same as the previous year.
Besides a salary, Mr Mwangi is among the major shareholders at Equity who earn millions of shillings in dividends from the bank. Mr Mwangi will take home Sh416 million from the total of 208 million shares he controls in the lender.
The bank earlier declared a dividend payout of Sh2 per share resulting in a total of Sh7.5 billion.
Public-listed companies are required to state the total compensation of each director, including salary, bonuses, pension and expenses charged to the company.
“A directors’ remuneration report shall state, for each person who has served as a director of the company at any time during the relevant financial year, the total of the sums (paid or receivable) … for the financial year preceding the relevant financial year,” the law states.
Equity says its executive directors, including Mr Mwangi, are paid a salary, pension and other unspecified benefits.
“Executive directors are eligible to participate in the group’s bonus scheme, which is anchored on achievement of key business performance indicators, but are not entitled to earn fees or sitting allowances,” the bank says.
“The board reviews and recommends the remuneration structure of directors annually, subject to shareholder’s approval. Directors’ remuneration is linked to performance but is competitively structured to attract and retain the best talent to effectively develop the group’s business,” Equity says in the report.
Each director of a public-listed company who knows that their company has published a remuneration report that does not comply with the requirements of the Companies Act is liable to a fine not exceeding Sh1 million. Equity Bank is Kenya’s second-most-profitable lender.