Mr. Munga is set to receive a cool Sh50 million ($500, 000) from the bank in recognition of his long service to the lender, which has recorded one of the biggest commercial successes in the country.
“Payment of a one-off gratuity of Sh50 million to the outgoing founder and chairman, Peter Kahara Munga, in consideration of his length of service, commitment and dedication to the company which spans over 35 years,” reads one of the special resolutions to be voted on at the shareholders’ meeting.
The ’thank you’ package is the largest ever publicly-disclosed exit compensation to a chairman of a Nairobi Securities Exchange (NSE) listed company.
Mr Munga is among the founders of the lender that started out as a building society in 1984 before converting to a bank in 2004. Equity listed on the NSE in 2006 with a value of Sh6.3 billion and now has a market capitalisation of Sh158 billion, representing a capital growth of 25 times.
Mr Munga, who will not seek re-election at the bank’s annual general meeting at the end of this month, will be replaced by David Ansell.
Meanwhile, Equity bank wants to allot its workers 205.7 million ordinary shares which are worth Sh8.6 billion on the basis of Wednesday price at the Nairobi bourse.
The shares are also equivalent to five percent of the issued share capital of the company, but the actual allotment will also be subject to approval by the Capital Markets Authority (CMA).
If approved it will become the 15th Esop among Kenya's listed companies. The last firm to have its employee share plan approved by the CMA was Britam.
