KenolKobil chairman James Mathenge, Kenya Airways' Michael Joseph and Unga Group’s Isabella Ochola-Wilson are some of the highest-paid non-executive directors. PHOTOS | FILE
Ten highest-paid non-executive directors took home between Sh6.6 million and Sh24.6 million - matching what medium-sized firms paid their CEOs.
Directors of some of the largest and most complex companies on average held meetings once a month, making them some of the highest-paid professionals based on the hours applicable.
Stakeholders, however, argue that companies need to pay well to attract highly qualified individuals.
Chairpersons of Nairobi Securities Exchange-listed companies and holders of multiple board positions have emerged as the best-paid directors in corporate Kenya, recent pay disclosures show.
Ten highest-paid non-executive directors took home between Sh6.6 million and Sh24.6 million or a monthly compensation of between Sh550,000 and Sh2 million —- matching what medium-sized firms paid their CEOs.
KenolKobil #ticker:KENO chairman James Mathenge, Kenya Airways' #ticker:KQ Michael Joseph, KCB’s #ticker:KCB Ngeny Biwott and Unga Group’s #ticker:UNGA Isabella Ochola-Wilson topped the list of the highest-paid non-executive directors who earned millions of shillings in retainers, director fees, sitting allowances and even bonuses.
The high-level compensation reflected the large salaries and bonuses doled out to CEOs of the companies they lead, which topped the Sh100 million mark in some cases.
The latest executive pay disclosures show that directors of some of the largest and most complex companies on average held meetings once a month, making them some of the highest-paid professionals based on the hours applicable.
Stakeholders, however, argue that companies need to pay well to attract highly qualified individuals, who also face legal exposure in the event of negligence, misstatements and fraud, among other corporate malpractices.
The majority of the best-paid directors were compensated for their professional services, while others as owners doubling as board members to watch over their investments.
Highest paid
Mr Mathenge of KenolKobil is Kenya’s highest-paid non-executive director having taken home a total of Sh24.6 million in the year ended December.
The amount consisted of a Sh14.9 million bonus and Sh9.7 million fees that nearly doubled from Sh5.3 million the previous year.
Mr Mathenge and the company’s chief executive, David Ohana, have been part of the team credited with turning around the oil marketer which returned to profitability in 2017 and is cleaning up its books by settling legacy commercial disputes.
Mr Joseph, chairman of national carrier Kenya Airways, was second with a total compensation of Sh13.5 million for the nine months ended December. He also takes home millions of shillings from his directorship at telecoms operator Safaricom, which is yet to disclose its board remuneration.
Mr Joseph was appointed to help turn around the loss-making airline last year where he has pushed the idea that KQ, as the airline is popularly known, should not be run to maximise profits but to offer wider economic benefits to the country.
He has recently proposed a merger between KQ and the Kenya Airports Authority (KAA) to help the two parties share costs.
Mr Biwott of KCB comes in third with total earnings of Sh13 million in the year ended December 2017, making him the highest-paid chairman in the banking industry.
Peter Munga was paid a total of Sh11 million in the same period from his directorships at Britam #ticker:BRIT, HF Group #ticker:HFCK and Equity Group #ticker:EQTY where he serves by virtue of being a founder or a major shareholder.
The billionaire entrepreneur recently retired as chairman of Equity and remains a non-executive director at HF and Britam where he has reduced his interest by selling shares worth more than Sh6 billion.
Billionaire businessman Andrew Ndegwa, who was paid Sh10.3 million from his directorships at Unga Group and NIC Group, is next in the top earners’ list. His family has controlling stakes in both firms.
The Ndegwas are currently working in concert with Delaware-based conglomerate Seaboard Corporation to take Unga private, and the multinational has offered to buy out the miller’s minority investors.
Co-op Bank #ticker:COOP chairman John Murugu is next with a total compensation of Sh10 million and is followed by Mrs Ochola-Wilson, who earned Sh8.7 million from her roles as chairperson of Unga and non-executive director of NIC Group #ticker:NIC.
Dennis Awori earned a total of Sh7.9 million from his directorships at Carbacid #ticker:CARB, East African Cables #ticker:CABL and Kenya Airways – where he stepped down last year. Japheth Magomere, the chairman of CIC Group, was paid a total of Sh7.3 million.
His counterpart at Barclays Bank of Kenya #ticker:BBK, Charles Muchene, was paid Sh6.6 million and has additional earnings from his role as chairman of East African Breweries (EABL) #ticker:EABL, which is yet to publish its directors’ remuneration.
