Deacons CEO paid Sh22.8m last year
Muchiri Wahome’s earnings rose marginally from Sh22.4 million the year before. His remuneration in the review period comprised a basic pay of Sh17.2 million and allowances of Sh5.5 million. Mr Wahome’s compensation in the previous year was a basic pay of Sh17.1 million and allowances of Sh5.3 million.
Deacons East Africa #ticker:DCON chief executive Muchiri Wahome was paid Sh22.8 million in the year ended December, the fashion retailer disclosed in its latest annual report. Mr Wahome’s earnings rose marginally from Sh22.4 million the year before. Mr Wahome’s remuneration in the review period comprised a basic pay of Sh17.2 million and allowances of Sh5.5 million. His compensation in the previous year was a basic pay of Sh17.1 million and allowances of Sh5.3 million.“Executive director is remunerated in accordance with the staff remuneration policy. The remuneration package comprises a basic salary, pension and other benefits designed to recognise the skills and experience of executive director,” says Deacons in the report.Under his tenure, the loss-making company has surrendered two of its most valuable franchises – Woolworths and Mr Price — to the owners of the brands.
Deacons has drawn a five-point plan to stem its losses. These include developing its own fashion brand, launching an e-commerce platform and shutting down loss-making stores and brands.The company has also arranged short-term loan facilities and plans to raise more funds from existing shareholders.“The group and the company has appointed a transaction adviser to raise equity/debt capital from existing and new shareholders so as to ensure its obligations are met, as and when they fall due,” reads part of the report.“These proceeds will also be applied to extension of successful brands and promotion of its own house brands.”The fashion retailer’s net loss widened three times to Sh841.4 million in the review period compared to Sh276.3 million a year earlier. The company’s stock has dropped 91.3 per cent from the listing price of Sh15 per share in 2016 to yesterday’s Sh1.3.The losses have whittled down its shareholder funds to Sh330 million from highs of Sh1.5 billion in 2015. The company recently received Sh133.3 million from sale of its Mr Price stores to the franchise owner Mr Price Group which is based in Durban, South Africa.The payoff covers the cost Deacons had incurred in equipment and operating leases for the 12 stores.