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Economy

NSE companies to disclose pay for laid-off CEOs

Former TransCentury CEO Gachao Kiuna. FILE PHOTO | NMG
Former TransCentury CEO Gachao Kiuna. FILE PHOTO | NMG 

Companies listed on the Nairobi Securities Exchange (NSE) will now be required to disclose how much they will pay their CEOs and top executives should they get sacked before the end of their terms.

The demand is contained in new rules dubbed the Companies (General Amendment) Regulations 2017, which are meant for investors to know the liability of terminating executives’ contracts in quoted companies.

The rules come as at least four NSE-listed companies battle compensation lawsuits filed by former CEOs.

“A director’s remuneration report shall contain, in relation to a director’s contract of service… provision for compensation payable upon early termination of the contract,” amendments to the companies law say.

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