advertisement
Companies

KenolKobil offers CEO Ohana Sh1.5bn shares

 KenolKobil chief executive David Ohana. FILE PHOTO | NMG
KenolKobil chief executive David Ohana. FILE PHOTO | NMG 

KenolKobil’s #ticker:KENO chief executive David Ohana is set to acquire 88 million shares of the oil marketer currently worth more than Sh1.5 billion over the next six years, a move that could see him emerge with a significant stake in the company.

The Nairobi Securities Exchange-listed #ticker:NSE firm disclosed the existence of the share options in its latest annual report, which also revealed that Mr Ohana’s cash compensation stood at a total of Sh151.1 million in the year ended December.

The executive earned Sh140.1 million the previous year, including a salary, bonus and other unspecified pay items.

“The company granted the group managing director options for 88,000,000 units subdivided into four tranches of 16.8 million, 23.2 million, 24 million and another 24 million units,” KenolKobil said in the report. “The exercise dates for the tranches is January 1, 2020, January 1, 2021, January 1, 2022 and January 1, 2023 for the four tranches respectively. Each of the tranches has a 2-year exercise period.”

advertisement

The options were granted on June 20, 2016 and are offered at a grant price of Sh10.3, which was the market price at the time.

KenolKobil says the options, to which no voting rights and dividends will accrue, are to be settled through issue of additional ordinary shares.

Assuming Mr Ohana takes up all the shares, remains invested and no other additional stock is issued, he could end up with a 5.6 per cent stake in the company at the end of the six years.

The disclosure of his stock-based compensation comes after the oil marketer said it paid its former chief executive Jacob Segman Sh707.1 million to settle his claims arising from a separate share award scheme.

KenolKobil said its executive option scheme is open to a select group of permanent employees holding managerial positions in the company or its subsidiaries. 

“Entitlement is based on merit, which is at the sole discretion of the board of directors,” the company said.

advertisement