NSE chief executive’s salary unchanged at Sh18.1 million
The Nairobi Securities Exchange (NSE) #ticker:NSE left the pay of its chief executive Geoffrey Odundo unchanged at a total of Sh18.1 million last year when its net profit jumped 17.5 per cent to Sh216.2 million.
Mr Odundo earned a salary of Sh16.5 million or Sh1.3 million per month and pension of Sh1.6 million in the year ended December, same as the previous year. He did not get a bonus in the two years.
“The chief executive is the only executive director on the board and the company has in place a remuneration policy which is aimed at ensuring compensation is competitive and aligned to the company’s strategic objectives,” NSE said in its latest annual report which disclosed the executive’s remuneration.
“There were no substantial changes to the Director’s remuneration policy during the year 2017.”
Mr Odundo is entitled to a monthly salary and an annual bonus based on the performance of the company, his individual performance and general inflation considerations, the company said.
NSE also contributes to his pension and provides him with a car.
The bourse has one of the simplest compensation structures among publicly traded firms.
Several other listed companies pay their CEOs across more than five items including salary, pension, benefits, shares, deferred cash and bonus.
The bourse’s higher earnings in the review period were driven by increased trading of shares on which it earns commissions.
A rebound in market prices of most of the listed firms further boosted NSE’s commissions which are based on the value of transactions.