Agricultural firm Sasini #ticker:SASN paid its new managing director Martin Ochieng Sh16.99 million in the seven months ended September 2019, according to the company’s latest annual report.
The earnings are from March 2019 when he took over from Stephen Maina Githiga whose contract lapsed in December 2018.
The remuneration was made up of Sh15.4 million basic pay and Sh1.59 million non-cash benefits.
Mr Githiga was paid Sh11.78 million in his last three months in office. His previous full-year pay was Sh24.1 million.
“The salary for the executive director is set at a level which is considered appropriate to attract an individual with the necessary experience and ability to oversee the business,” Sasini says in the report.
The salary is subject to annual review in October of each year based on internal and external factors such as responsibilities, market positioning, inflation and company performance.
Other benefits enjoyed by a CEO include medical cover, pension, club membership as well as travel and other expenses incurred in the course of performing duties.
Sasini’s policy is to appoint a CEO for an initial two-year period, which may be extended for a further term by mutual consent.
The initial appointments and any subsequent reappointments are subject to annual review by its remuneration and nomination committee.
During the period, the firm paid Sh8.55 million in fees and sitting allowances to its eight non-executive directors. This was up from the Sh7.89 million paid out in the previous period.
The increased earnings for the executive and non-executive directors was despite the company’s drop in performance. Sasini sunk into a net loss of Sh337.7 million on the back of lower sales from dropping tea and coffee prices.
The Nairobi Securities Exchange-listed firm had made a net profit of Sh293.5 million the year before.