HF Group (popularly known as Housing Finance) chief executive officer Frank Ireri was paid a total of Sh. 64.4 million in the 2017 financial year.
This has been revealed in the company’s annual report. the pay came as HF took a hit financially. For example, the Sh. 64.4 million salary was equivalent to 51 per cent of HF’s net profit in the year ended December.
This pay was a marginal rise from the Sh. 64 million that he took home the previous year. It comprised a basic pay of Sh. 44.4 million or Sh. 3.7 million per month, gratuity of Sh. 13.7 million, and non-cash benefits of Sh. 6.1 million. “The remuneration of the executive director is as per negotiated employment contract. There has been no change to the non-executive directors’ remuneration, as approved by the shareholders on April 29, 2016,” HF said in the report.
During the financial year, HF’s earnings declined 86 per cent from Sh. 905.8 million that was recorded the previous year. In the same vein, interest income dropped 17.1 per cent to Sh. 7.1 billion as the loan book shrunk 8.8 per cent to Sh. 49.6 billion, with interest rate caps further reducing income from the core lending business. HF also repaid a Sh. 7 billion corporate bond last year.
