Companies

I&M Bank chief gets 8pc annual salary increase to Sh44.6m

sarit

I&M executive director Sarit Shah. File Photo | Fredrick Onyango | NMG

I&M Bank #ticker:I&M executive director Sarit Shah was paid a total of Sh44.6 million in the year ended December, the lender’s parent company I&M Holdings has disclosed.

Mr Shah’s earnings rose eight per cent from Sh41.3 million the year before, with his compensation including fees for his additional role as a non-executive director of I&M Holdings, which is listed on the Nairobi Securities Exchange (NSE).

The non-operating holding company does not have a chief executive officer and is led by a board that oversees CEOs heading the subsidiaries including I&M Bank Kenya’s Kihara Maina.

Remuneration of Mr Shah –whose family founded the banking group— in the review period comprised a salary of Sh29.5 million or Sh2.4 million per month, bonus (Sh8.8 million), pension (Sh2 million), insurance (Sh2.2 million) and I&M Holdings fees (Sh1.9 million).

His pay in the previous year comprised a salary of Sh28.2 million or Sh2.3 million per month, bonus (Sh7.4 million), pension (Sh1.9 million), insurance (Sh2.1 million) and I&M Holdings fees (Sh1.5 million).

Unique structure

The lack of a CEO at I&M Holdings saw the company avoid discussing its executives’ compensation policy, dwelling instead on compensation of non-executive directors who are entitled to sitting fees and an annual retainer.

The company’s structure is unique among banks listed on the NSE. Its rivals, which also transformed into non-operating holding companies, including KCB Group #ticker:KCB and Equity Group #ticker:EQTY, have CEOs at the parent company level.

Mr Shah, who holds a 2.05 per cent stake in the banking group worth Sh915 million at current market rates, also serves on the boards of the lender’s other subsidiaries including I&M Bank Tanzania Limited.

I&M Holdings has made a series of acquisitions in the past few years as it seeks to attract and retain customers by offering comprehensive financial services across the region.

Youjays Insurance Brokers, Giro Commercial Bank and Burbidge Capital are among the companies that have been acquired by I&M which has operations in Tanzania, Rwanda and Mauritius.

The bank posted a net profit of Sh7.2 billion in the year ended December, down from Sh7.7 billion a year earlier on the back of higher expenses.

The company is upgrading its core banking system across the region as part of its efforts to digitize its operations.

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