Gideon Muriuki, the chief executive of Co-operative Bank, received an Sh260.3 million bonus last year, the most in the banking industry.
This was part of the bank’s performance-based compensation system for employees.
According to the lender, the CEO was rewarded for maintaining shareholder earnings while managing the bank through the Covid-19 pandemic.
Mr. Muriuki’s pay has decreased from Sh271 million in 2019, but it still dwarfs bonuses paid to CEOs of competing for big banks, which have seen their bonuses trimmed by bigger proportions.
In the year ending December, KCB, NCBA, Standard Chartered Bank Kenya, and Absa Bank Kenya decreased or froze bonuses for their CEOs, saving a total of Sh262.3 million.
The only exceptions were Equity and I&M, which increased their CEO incentives by Sh4.7 million and Sh4.6 million, respectively.
Unlike other large banks, Co-op Bank stood out for sustaining dividend payouts.
The bank also recruited more staff, paying them more, and growing in the midst of the pandemic by acquiring Jamii Bora and renaming it Kingdom Bank.
Mr. Muriuki was among the bank’s employees, whose salaries and incentives increased to Sh13.4 billion from Sh12.4 billion a year earlier during the review period.
*This article was written by Agencies for Uzalendo News.
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