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Economy

NIC CEO’s salary drops on back of lower cash bonus

NIC Group’s chief executive, John Gachora,
NIC Group’s chief executive John Gachora. FILE PHOTO | NMG 

NIC Group’s #ticker:NIC chief executive, John Gachora, was paid a total of Sh94.9 million in the year ended December or Sh7.5 million monthly, placing him among the highest-paid bank executives in the country.

Mr Gachora earned a total of Sh98 million the previous year, with the bulk of his compensation in the form of salary and cash incentives.

The drop in pay is linked to a lower cash bonus of Sh23.5 million, down from the Sh29.9 million he earned in the year to December 2017.

NIC Bank’s net profit for 2018 rose by two per cent to Sh4.23 billion on the back of higher non-funded income and a cut in loan loss provision that offset falling interest income.

The mid-tier lender was able to reverse the 4.4 per cent profit fall it recorded in 2017 following a drop in interest income that the lender blames on the rate cap.

NIC says its compensation policy is aimed at attracting highly skilled staff and keeping up with prevailing wage rates in the market.

“The remuneration policy has the objective of providing remuneration that will attract, retain and engage high calibre directors whilst protecting and promoting the company’s objectives. The policy seeks to provide market competitive remuneration,” NIC said in its latest annual report, which disclosed the CEO's compensation.

Executive directors' pay is pegged to the bank's performance, with the bonuses accounting for a quarter of the Sh94.9 million paid to the CEO.

The lender poached Mr Gachora in 2013 from South Africa-based Barclays Africa where he was in charge of the multinational’s corporate and investment banking.

His pay comprised a salary of Sh61.5 million or Sh4.8 million per month, cash awards (Sh26.7 million) and retirement benefits (Sh6.6 million).

The previous year, he earned a salary of Sh57.6 million or Sh5.1 million per month, cash awards (Sh34.2 million) and retirement benefits (Sh6.2 million).

NIC’s executive director for finance, David Abwoga, was paid a total of Sh33.9 million for the nine months he was in the position last year, translating to a monthly pay of Sh3.76 million.

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