Centum sets new record -Business Daily

Why we stand by our story on Centum CEO pay

The Centum Investment CEO James Mworia, in several tweets Wednesday, challenged the accuracy of this story headlined: “Centum CEO sets new record with Sh375.6m CEO pay.”

We indicated, in our response to the tweets, that we stand by our story which is based on the company’s disclosures in its latest annual report.

Here are the reasons why we stand by the story:

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[li]There annual report tabulates key management compensation, which includes pay for executive directors and senior management. This was given as Sh614.9 million and Sh711.5 million for the years 2017 and 2016 respectively, at the group level.[/li][li]There is additional disclosure of the management team remuneration, now narrowed down to those who are executive directors. This is given as Sh375.6 million and Sh201.1 million for the years 2017 and 2016 respectively, again, at the group level.[/li][li]Mr Mworia is the only executive director at the group level at Centum, and the amounts above are attributable to him alone going by the presentation in the annual report.[/li][li]“The board has only one executive director to prevent conflicting roles between the Management and the Board of Directors,” Centum says in its 2017 annual report.[/li]

[I]https://www.businessdailyafrica.com/image/view/-/4095496/medRes/1752328/-/1338nt4z/-/centum.jpg[/I]

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hehehe si aende court and sue for defamation ama atulie akule pesa zake pole pole kwani tutamchapa

Mworia is Chris Kirubi’s right hand man a.k.a academic prodigy. Most earnings by staff at centum are pegged on performance. The problem with this compensation model is that employees tend to inflate earnings (unrealized) to benefit financially. Any investor worth his salt should avoid Centum’s shares like a plague. It is the management’s turn to eat as they inflate earnings labeled “revaluation gains” to hoodwink shareholders.

It’s not that simple.

Investors, current and prospective would consider this before doing business with Centum.
Labda hataki kumulikwa na KRA and other wakora based on these figures.

Centum froze dividend payouts to shareholders in 2009 and only started paying out dividends last year (2016). For 9 years, Centum shareholders did not receive any dividends under the guise of “compounding returns”. During this period, executive pay shot through the roof as the company made billions in the process. Last year, the company issued dividends totaling Ksh 665 million to shareholders. In that year (2016), the executive pay was Ksh 711.5 million. The executives at Centum pocketed more cash than the shareholders collectively. Of the 711.5 million, Ksh 201 million was pocketed by Mworia, the CEO. If this is not corporate banditry, I dont know what is. In simple terms, the executives at Centum are using shareholder’s cash as an interest free loan to run their privately held company. Verdict: Dont own Centum shares, work for Centum.:eek::eek:

muturandom isipokuwa your love hate relationship with single mathas wewe hunyandua points

Point taken

Mharibu, muchafue Centum, hatujali.na hatuogopi!

I thought government regulation was stringent on executive compensation as part of corporate governance especially considering centum is a publicly traded company. Ama kenya is under-regulated?

This is quite an eye opener! I wonder how the shareholders of CENTUM feel about this and what options they have to rectify this situation.

Are you kidding me?

In Kenya? My friend maybe you didn’t know but we have no true capitalists and the judges work for the rich

#VeryFunny
Just got a thick Centum dividend check last week. Wacha siasa bratha. When you focus on envying personalities rather than prudent investing you will not go very far. The question is, is the company delivering on ROI, ROA, etc or not. Of course buying these shares are a risk but if you bought this creature back when it was named ICDC and going for TEN BOB a share around 2010 hapo you would be rejoicing right now like some of us that it is at 44.5 and climbing. If baba gets contained by March this baby will boom to 70 and beyond.