Oil marketer KenolKobil paid its former chief executive, Jacob Segman, Sh. 707.1 million to settle a long-running dispute over his stock-based compensation, making it corporate Kenya’s largest single payout to an executive.
The Nairobi Securities Exchange-listed firm disclosed Mr Segman’s final compensation in its latest annual report that has been published in line with the new reporting regulations requiring detailed account of money paid to individual directors.
“A legal dispute arose on validity of the Esop [employee share ownership plan] options, with legal proceedings commencing in courts of law in Kenya and in the State of Delaware, USA. In December 2017, the company settled the matter out of court, making payment to Mr Segman possible,” the report says.
The sum is nine times the Sh. 77.1 million the oil marketer had earlier provided for in its books for Mr Segman’s compensation, but which was not disclosed as such.
KenolKobil’s other reports had previously suggested that the former executive walked away with sums ranging between Sh300 million and Sh480 million.
Mr Segman, a former group managing director who resigned in 2013, had been granted Esop option tranches between 2005 and 2010.
“The same vested at various dates between 2008 and 2013,” KenolKobil says in the report.
