Monday, September 25, 2023

James Mwangi gets Sh. 71 million salary increase. See his monthly salary

Equity Bank Group chief executive officer Dr. James Mwangi is one of the best paid corporate bosses in Kenya.

In the financial year 2022, his earnings as Equity CEO jumped 49 per cent to Sh. 213.64 million, including a Sh. 53 million bonus.

This means that his salary increased by up to Sh. 71 million in 2022 from the Sh. 143 million he got in 2021.

This bonus payout followed a 15 per cent rise in Equity Bank profits to Sh. 46.1 billion. Dr. Mwangi was rewarded with a 35.9 per cent salary rise to Sh. 106 million and added Sh. 53 million bonuses after having missed out in 2021.

Mwangi also received Sh. 685.3 million in dividends for his direct 4.54 per cent stake in Equity for the financial year ended December 2022.

In the financial year 2021, his basic pay increased from Sh. 56.73 million to Sh. 78 million, translating to average monthly pay of Sh. 6.5 million.

However, his annual pay decreased from what he had earned in 2020. In 2021, Dr. Mwangi earned Sh. 143.02 million. In 2020, his pay had stood at Sh. 278.5 million. This cut was attributed to the absence of the gratuity he received in 2020.

In 2020, Dr. Mwangi’s earnings include a Sh. 194.5 million gratuity, Sh. 56.7 million in basic pay and Sh. 13.9 million in leave pay.

In the previous 2019 year, his salary disclosure to the NSE for the financial year showed that he was paid a total salary Sh. 65.1 million. This salary was an increase from salary of Sh. 60.4 million in the full year 2018 disclosure.

This pay included salary of Sh. 56.7 million (Sh. 4.72 million per month), non-cash benefits (Sh. 4.7 million), other allowances (Sh. 3.7 million) and pension (Sh. 2,000).

In the 2018 period, he earned a salary of Sh. 56.73 million which represented a monthly salary of Sh. 4.72 million and an allowance of Sh. 3.744 million during the year.

Dr. Mwangi’s salary also emphazised his position as one of the highest paid chief executives in the country.

Apart from this salary, Mr. Mwangi is also set to take home dividends amounting to Sh. 416 million from his 208 million shares which he holds in the bank.

Peter Ndegwa now earning Sh. 288.9 million salary as Safaricom CEO

Equity Bank executive directors who include Mr. Mwangi, are paid a salary, pension and other unspecified benefits.

“Executive directors are eligible to participate in the group’s bonus scheme, which is anchored on achievement of key business performance indicators, but are not entitled to earn fees or sitting allowances. The board reviews and recommends the remuneration structure of directors annually, subject to shareholder’s approval.

Directors’ remuneration is linked to performance but is competitively structured to attract and retain the best talent to effectively develop the group’s business,” Equity says in the report.

Currently, the law requires all public-listed companies to declare the total compensation of each director, including salary, bonuses, pension and expenses charged to the company.

Brief profile:

James Mwangi is an accountant, banker, businessman and entrepreneur in Kenya, the largest economy in the East African Community.

He is the current Group Managing Director and Group Chief Executive Officer of the Equity Group Holdings Limited, the banking conglomerate with the largest customer base on the African continent, in excess of 8 million as of 2014.

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