Equity Group CEO James Mwangi earned Sh213 million more last year

Equity Bank group managing director & CEO Dr. James Mwangi. [Fila, Standard]

Equity Group Chief Executive Officer James Mwangi pocketed Sh278.5 million in earnings for the year ended December 2020, emerging as the highest-paid top executive in the country’s financial services sector last year.

Data from Equity Group’s latest annual report indicates that Mwangi’s earnings include a Sh194.5 million gratuity, Sh56.7 million in basic pay and Sh13.9 million in leave pay compared to the Sh65 million he took home in 2019.

Equity Group reported Sh20.1 billion in profit after tax for the year ended December 2020, a 10 per cent drop compared to earnings made over a similar period in 2019.

Senior executives in other large financial companies recorded varying results in their earnings, with most lenders cutting emoluments or withholding bonuses in tandem with the bank’s performance.

Deferred bonuses

KCB Group Chief Executive Joshua Oigara earned Sh116 million in income for the year ended December 2020, representing a 61 per cent drop, from Sh299.1 million in income made in 2019.

In 2019, Oigara’s earnings included Sh193.7 million in cash and deferred bonuses.

KCB Group recorded Sh19.6 billion in profit after tax for the year ended December 2020, a 22 per cent drop compared to Sh25.1 billion made in 2019 - attributed to an increase in loan provisions. 

Earlier this year, Central Bank of Kenya (CBK) Governor Patrick Njoroge cautioned lenders from handing out bonuses and dividends for the past financial year.

The apex lender said this was meant to boost their liquidity levels as the pandemic eroded earnings across the board. 

“Banks have adequate buffers to deal with the shocks,” explained Dr Njoroge, following the first monetary policy meeting earlier this year.

“One of the things we did was to remind the banks to be prudent in their decisions in regards to their dividends. They have actually been prudent with how they provide for losses due to non-performing losses.”

Standard Chartered Bank recorded a total of Sh177.6 million in emoluments paid to both executive and non-executive directors for the year ended December 2020, compared to Sh274.7 million recorded in 2019.

Cooperative Bank of Kenya on the other hand recorded a 20 per cent increase, paying out a total of Sh245 million to its directors for the year ended December 2020 compared to Sh201.7 million in the previous year. 

Board directors at Absa Bank Kenya also got a 23 per cent increase with earnings for the year ended December 2020 standing at Sh223.9 million, up from Sh172.6 million in 2019.

Stanchart Chief Executive Kariuki Ngari took home Sh90.6 million in total income for the year ended December 2020, a 10 per cent drop from Sh100.5 million he took home in 2019.  

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