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Co-op Bank's Gideon Muriuki has emerged as the best paid Chief Executive Officer (CEO) among his peers leading public listed companies in the country.
An annual report by the leading banking institution shows that Mr Muriuki pocketed Sh370 million in the year ended December 2017. Of the Sh370 million, the CEO was paid Sh99.8 million in salary and a further Sh270.7 million in bonuses.
This means that Muriuki earned more than Sh1 million per day and over Sh30 million every month. The report shows that the bank paid Muriuki Sh92.6 million in salary and allowances the previous year, meaning he received a Sh7 million pay hike in 2018.
At Sh370 million, Muriuki took home Sh100 million more than what Joshua Oigara, the chief executive of Kenya’s largest bank KCB made. Oigara's pay stood at Sh256 million. Muriuki's annual pay is also more than five times the Equity Bank’s James Mwangi, who takes home Sh60 million.
KCB is biggest bank in the country with Sh646.7 billion asset base, followed by Equity with Sh524.5 billion total assets. Co-op has an asset base of Sh386.9 billion.
In the annual report, Co-op Bank says Muriuki's pay is a reflection of natural accruals from his long service and his role in transforming the bank from a loss-making company to one of the country’s biggest lenders.
“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.
Co-op recorded a first net profit of Sh164.7 million in 2002 under Muriuki's watch, having been hired an year earlier. The profits rose in following years to reach Sh11.4 billion at the end of December, 2017.
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With or Without lots of Money: PEACE is the Key. No sleeping Pills; no Painkillers.
In a poor country where 46% of the population live under poverty line, people live on $1 a day and an annual GDP of $360 US, (ref; World Bank); there is something very wrong with this picture. The recklessness with which we hoard money and natural resources among the elites is fatalistic that will create a tragic chapter in our nation.
@mwororo. The fellow transformed abank that was sinking ,in to avery profitable entity. If he is bringing in billions for the bank, I see no problem with giving him even one percent of the exorbitant profits. Contrast that with our MPigs who do not produce,but just consume big benefits,and salary.I have always said if Mpigs are not happy with their pay, they should to the "Gidion"way.
This kind of Salary can Sink this guy into very bad Depression; one of the Evils the Love for MONEY brings (to those who Love it).
It's called Greed; even Tribal Greed.
Unbelievable! How much has he given to charity. As the assassinated member of Nyandarua North J.M. Kariuki once said, "Kenya is a nation of 10 millionaires and 10 million beggars. That was in 1975?
Oprah Winfrey was never Very Happy until she began Charities. It's called "Draining the Swamp". Even Bill Gates will tell you Him snd his Wife are Happier spending their Prosperity on Poor Country.
@Maxiley, I appreciate your perspective on this issue but my fear is that we are putting together a narrative that is not sustainable in the long run. It's great that he turned the bank around but we need to practice capitalism with discipline. How much is a station commander worth if he turns around a poorly performing police station? What a bout a fire fighter who risks his life to save a child stuck in an inferno in a burning building. Remuneration like Muriuki's is a runaway train that will be hard to control once it gathers speed. If this bank CEO accepts a more mondarate compensation, wouldn't that create more capital for more small business borrowers? As for the Mpigs, they're a liability to the tax payer. I resent them and can't wait to see them sliced down to a reasonable number that can hold a mature and meaningful debate in parliament- right now what we've is a mob rule.
@mwororo.Some rewards or compensations cannot be neasuredim monetary terms.Idont think afirefighter is paid based on anything other than the duties he is supposed to do.And he is held as a hero when he makes a daring move.Also remember that the budget of a bank can afford to pay Gidion that much...
Atrue preacher who saves 1000 souls should not clamour for more money than the one who daves 3 souls.The satisfaction is in the work not in the check.
True @Maxiley. The difference between Public service and Private sector is that glaring....with 'service' being the emphasis for public service and 'profits' being the main goal for private sector. Fire-fighters, police, army etc serve the people.
@Mwororo I see your point. Capitalism without control is like a run away train for sure. When you have a CEO earning in an hour what a clerk earns the whole year in the same company, that creates a bad precedence whether justified or not. This is more to do with humanity. Such salaries just worsen the gap between the rich and poor and we now know countries doing very well especially scandnavian countries, that gap is not so exaggerated. That does not mean there are no hard working CEOs, managers or even fire fighters and inventors etc. They have taken steps to control inequality.
A pilot or a surgeon get paid millions a month so I ask do they deserve the pay?????In USA/uk or any other so called first world countries some ceo get paid millions,is it ok?To me if yr company u work with have decided to pay u according to how much u have delivered,why not?
The guys I have issues with is the government official Gavana,mpigs,senators mpigs those ones I have issues with the If they r paid millions juu they r elected by pple to b servants???
God gifted each Man and Women differently package translates to 1250 Dollars an hour what a diverse kuna some who make that in a Month..week...day...year even 10 years..yet same eyes..ears..nose..legs ..hands..we can eat same food..sleep..na Maisha inaendelea bora uko na peace of mind and good health..too remember the less fortunate.