CMA paid its seven independent directors an average of Sh48,250 as sitting allowance per meeting for year to June last year.
CMA independent director Christine Okoth earned the highest total package at Sh2,072, 258 for the year to June 2017, translating to a monthly average of Sh172,688, having attended 21 meetings.
Besides the sitting perks, CMA offered the independent directors an average retainer of Sh853,957 annually or Sh71,163 monthly.
The Capital Markets Authority (CMA) has disclosed the juicy sitting allowances it pays its directors that are more than double what most listed firms compensate executive directors.
The authority paid its seven independent directors an average of Sh48,250 as sitting allowance per meeting for year to June last year, offering Kenyans a peek into boardroom compensation following new rules that demand disclosure of directors’ pay.
Directors of other listed companies such as Kenya Power #ticker:KPLC, KenGen #ticker:KEGN and East Africa Portland Cement Company (EAPCC) #ticker:PORT earn sitting allowances of Sh20,000, meaning the market watchdog paid 141 per cent more than the going rate.
Besides the sitting perks, CMA offered the independent directors an average retainer of Sh853,957 annually or Sh71,163 monthly. KenGen has a retainer of Sh50,000 monthly.
CMA independent director Christine Okoth earned the highest total package at Sh2,072, 258 for the year to June 2017, translating to a monthly average of Sh172,688, having attended 21 meetings.
The regulator’s other independent directors are the chairman James Ndegwa, Linda Muriuki, George Mose Moibi, Thomas Kibua, Harry Kimutai and Paul Ngugi.
The disclosure comes months after Attorney-General Githu Muigai published the long-awaited regulations requiring public listed firms to disclose directors’ remuneration and the basis of such payments in annual financial reports.
Kenya Power, KenGen and EAPCC, whose financial years end in June in agreement with the government calendar year, are first listed firms to comply with the new rules.
The firms whose financial year end in December are expected to make the disclosures in the annual reports from next month. The regulations are effective from August 28 and are aimed at increasing transparency on board pay.
The remuneration report will also include all allowances and sitting perks for every board meeting or committee meeting attended as well as travel allowances and per diem paid to directors away on official duties.
This is a departure from the past when board pay was lumped together, which made it difficult to know each directors compensation.
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