Sameer Africa #ticker:FIRE has disclosed the employment terms of its chief executive officer Allan Walmsley, breaking ranks with its peers to become the first publicly traded firm to meet the disclosure requirements of new rules set to come into force by the end of this year.
The tyre trading company says Mr Walmsley has a two-year renewable contract which expires on July 31, 2018.
Mr Walmsley’s annual pay remained frozen at Sh25.909 million in 2016 comprising Sh20.76 million in basic pay and allowances, Sh649,000 in non-cash benefits (motor vehicle, telephone allowances), and Sh4.5 million in gratuity, according to the company’s latest annual report.
The contract can be terminated by either Mr Walmsley or the Sameer’s board of directors through a three-month notice.
“The executive director’s (Walmsley) service contract contains covenants which restrict his ability to solicit or deal with clients and his ability to disclose trade secrets and confidential information during the tenancy of his directorship,” Sameer says in the report.
Companies listed on the Nairobi bourse will be forced to make public a breakdown of what is paid to each board member, as well as their terms of service, under fresh rules prepared by Attorney General Githu Muigai to enhance transparency and corporate governance.
Kenneth Gathuma, acting Registrar General of the Business Registration Service at State Law Office, told Business Daily that the new regulations will be taken to the National Assembly after the August polls for approval and later be gazetted to take effect.
Companies listed at the Nairobi bourse have traditionally not disclosed the contract terms and remuneration for board members and senior staff in the absence of a legal requirement.
ALSO READ: 7 NSE firms reveal details of CEO pay