James Mworia’s Salary: A few years ago, Centum CEO, James Mworia, was ranked as the highest paid chief executive officer in Kenya. Of late, though, Mr. Mworia’s salary fortunes have dwindled. He is no longer Kenya’s best paid CEO.
In the company’s latest report, Mr. Mworia’s pay dropped by 75 percent to Sh. 45 million last year after he missed out on bonus earnings for failing to meet the set annual performance targets.
In the previous year, he had taken home Sh. 177.6 million or an equivalent Sh. 14.7 million per month. This pay included a bonus of Sh. 132 million.
“Centum’s bonus scheme is based on creation of a cash return on assets at a rate greater than that of the market, excluding revaluation of assets. The investment firm’s cash returns for the year failed to hit the minimum threshold required to trigger bonus payments for employees. The generous bonus system is designed to act as an incentive for staff to produce at their optimum level and in turn get rewards for growing shareholder funds,” says a report that appeared in the Business Daily.
During the year under which Mworia earned Sh. 45 million, Centum’s net profit rose by 48 percent to Sh. 4.12 billion. This rise was driven by a Sh. 3.3 billion gain in fair value of property and land. But investment income fell from Sh. 3.5 billion to Sh. 3.2 billion due to lower interest earnings and reduced dividends.
“The firm has, however, made subsidiary sales this year in its beverage bottling and distribution business (Almasi Beverages Limited (ABL) and Nairobi Bottlers Limited (NBL) for Sh. 19.5 billion), which should reflect in subsequent financials and possibly trigger future staff bonuses. This is the second straight year in which James Mworia’s salary has gone down. The Sh. 177.6 million pay for the year to March 2018 represented a reduction of 19 percent on the previous year’s package of Sh. 219.2 million. The bonus vests over a period of three years, a structure that saw some senior managers get paid Sh. 56 million in bonuses accrued from previous years,” says the report.