Centum to pay each worker Sh11.1 million bonus
Investment firm Centum more than doubled the bonus payout to its 90 staff to Sh1 billion in the year ended March, making it one of the largest bonus allotment in corporate Kenya translating into an average entitlement of Sh11.1 million per employee.
The company’s bonus scheme, payable in three equal installments over three years, had accrued to Sh431.3 million the previous year.
Centum says in its newly released annual report that the 142.6 per cent jump in bonus payment is attributable to the out-performance of pre-set annual benchmarks.
“The bonus is high because of the performance,” said Centum CEO James Mworia in an interview.
Centum’s board has set a target for the employees to raise shareholder funds or net assets by 15 per cent each year. The employees are entitled to 20 per cent of any return above the set benchmark, with the absolute payout also based on individual performance.
Centum’s net assets rose 39.1 per cent to Sh32 billion in the review period, beating the Sh26.4 billion target of based on the company’s performance criteria.
This created an excess of Sh5.5 billion in absolute terms, of which up to Sh1.1 billion was available for allocation to the staff.
While the average employee is entitled to about Sh11.1 million, a breakdown of the payout shows the company’s top 10 executives will on average take home a higher pay cheque of Sh34 million each.
The executives’ bonus pool stood at Sh340.5 million, nearly tripling from Sh124.7 million the year before.
The number of top Centum managers rose from the previous seven to ten as CEOs of recently consolidated subsidiaries, including Joyce Macharia (Almasi Beverages) and Titus Karanja (K-Rep Bank) joined the list.
The cash payout is not automatic and is subject to further conditions including maintaining or increasing the shareholders’ wealth each year.
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SOURCE: Business Daily