Why we stand by our story on Centum CEO pay
The Centum Investment CEO James Mworia, in several tweets Wednesday, challenged the accuracy of our story headlined: “Centum CEO sets new record with Sh375.6m CEO pay.”
We indicated, in our response to the tweets, that we stand by our story which is based on the company’s disclosures in its latest annual report.
Here are the reasons why we stand by the story:
- There annual report tabulates key management compensation, which includes pay for executive directors and senior management. This was given as Sh614.9 million and Sh711.5 million for the years 2017 and 2016 respectively, at the group level.
- There is additional disclosure of the management team remuneration, now narrowed down to those who are executive directors. This is given as Sh375.6 million and Sh201.1 million for the years 2017 and 2016 respectively, again, at the group level.
- Mr Mworia is the only executive director at the group level at Centum, and the amounts above are attributable to him alone going by the presentation in the annual report.
- “The board has only one executive director to prevent conflicting roles between the Management and the Board of Directors,” Centum says in its 2017 annual report.
Centum Investment’s chief executive James Mworia’s total pay rose 87 per cent to a record Sh375.6 million in the year ended March compared with Sh201.1 million the year before, taking his cumulative eight-year pay to nearly Sh1 billion.
The compensation, which extended Mr Mworia’s record as corporate Kenya’s highest-paid CEO, was equivalent to Sh31.3 million per month, according to disclosures in the company’s latest annual report.
The bulk of Mr Mworia’s remuneration is made of a performance bonus scheme, whose targets the Centum chief executive and his management team have consistently met over the years, drawing hundreds of millions of shillings in return.
Mr Mworia’s take-home is particularly unique in the fact that his monthly salary is a more modest Sh2 million or about Sh24 million a year – translating to a small fraction of the annual total remuneration for the 40-year-old executive.