- Co-operative Bank chief executive, Gideon Muriuki is the best paid executive in the country.
- According to the bank's annual report Mr Muriuki was paid a total of Sh370 million ($3.7m) in the year ended December 2017.
- The pay is equivalent to more than Sh1 million ($1m) per day.
- At Sh370 million, Mr Muriuki's salary beats by more than Sh100 million ($1m) his close rival and the chief executive of Kenya’s largest bank KCB , Joshua Oigara whose pay stood at Sh256 million.
This Kenyan bank pays its CEO more than $10,000 per day, making him the best paid executive in the country
The pay is equivalent to more than Sh1 million ($1m) per day.
Mr. Muriuki emerged as the best paid executive among his peers in the leading public listed companies after the lender released its annual report for the year ended December 2017.
Co-op Bank says in its annual report that it paid Mr Muriuki a total of Sh370 million ($3.7m) in the year ended December 2017 -- Sh99.8 million in salary and allowances before crowning it all with a Sh270.7 million ($2.71m)bonus.
The report shows that Mr Muriuki earned Sh92.6 million in salary and allowances the previous year, meaning he got a Sh7 million pay increase in 2018.
It is not however clear from the report whether he earned any bonus for that period.
The lender cited Mr Muriuki’s long service and his role in turning around the bank from a loss-making operation to one of the country’s biggest lenders as the yardstick for the fat remuneration.
“Under the performance driven culture, it is noteworthy that the bank has progressively improved profitability from a huge loss of Sh2.3 billion in 2000 and an asset base of Sh22.3 billion to the current profit before tax of over Sh16.4 billion and an asset base of almost Sh400 billion,” Co-op Bank says in its remuneration report.
A year after being hired, the lender reported its first net profit of Sh164.7 million ($1.65m) in 2002.
At Sh370 million, Mr Muriuki who joined the bank in March 2001, so far stands as the highest paid leader of a Nairobi Securities Exchange-listed firm, beating by more than Sh100 million ($1m) his close rival and the chief executive of Kenya’s largest bank KCB , Joshua Oigara whose pay stood at Sh256 million.
Mr Muriuki’s 2018 pay was also more than five times the Sh60.4 million ($604,000) that Equity Bank’s chief executive James Mwangi earned.
The lender’s business for the year ended December 2017 was however not without its fare of challenges.
Co-op Bank’s profit after-tax fell to Ksh11.4 billion ($114 million) for the full year ended December from Ksh12.7 billion ($127 million) in 2016.
The bank cited challenging business environment as a result of interest rates caps, reduced economic activity and volatile political environment. Co-op said many investors postponed their investments.
Co-op Bank was however not alone in the list of lenders who posted reduced profits for 2017, peers such as KCB, Barclays and Stanbic also posted flat or reduced profits for 2017.
According to its 2018 first quarter financial report, the lender had a strong group performance with a Profit Before Tax of Kshs.4.89 Billion.
The bank also bagged the prestigious Kenya Bankers Association (KBA) Award 2017, after successfully resisting stiff competition from 13 other peer institutions in the banking sector.
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