Economy

State firms disclose board chair salaries

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Bill Lay (EAPCC), Kenneth Marende (Kenya Power) and Joshua Choge (Kengen). FILE PHOTOS | NMG

Three listed State-owned firms listed have published details of what their chairpersons were paid in the year to June, offering Kenyans a peek into boardroom compensation following new rules that demand disclosure of directors’ pay.

Kenya Power, KenGen and East Africa Portland Cement Company (EAPCC) have disclosed they pay their chairpersons earn between Sh3 million and Sh3.4 million annually or Sh255,000 and Sh284,000 monthly.

Kenya Power paid former Speaker Kenneth Marende — who was ejected from the board last week — Sh255,000 while Bill Lay earned an average of Sh283,333 a month.

Joshua Choge earned a monthly average of Sh265,000 at KenGen as board chairpersons pay trailed that of CEOs who earn between Sh1 million and Sh2 million.

The disclosure comes weeks 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.

The three, whose financial years end in June in agreement with the government calendar year, are first listed firms to comply with the new rules.

READ: Portland CEO exit doubles board’s pay

ALSO READ: Rebecca Miano becomes KenGen's first female CEO

The regulations are effective from August 28 and are aimed at increasing transparency on board pay.

Sitting perks

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.

The remuneration reports of the three firms revealed board chairs are paid a fixed fee and sitting allowances.

KenGen pays its chairperson a fixed fee of Sh600,000 as a director, Sh20,000 sitting allowance per meeting and an honorarium or stipend of Sh80,000 a month.

Mr Lay at the EAPCC had a fixed fee of Sh300,000, which is higher than the Sh160,000 granted other directors and sitting allowances.

He gets refunded travel and accommodation expenses.

Kenya Power chairperson is entitled to a monthly honorarium of Sh80,000, Sh20,000 sitting allowance, airtime (Sh20,000 a month, lunch allowance (Sh2,000) and Sh18,200 accommodation allowance for assignments outside Nairobi.