By the time you spill an hour taking a shower, brushing your teeth and trying unsuccessfully to shake off a hangover, Gideon Muriuki will have made over Sh 40, 000.
That comes to more than Sh1 million in 24 hours, and he could most times be working from home, doing Zoom meetings, delegating to his juniors, due to the partial lockdown and dawn to dusk curfew.
If that is not being kissed by Lady Luck, then tell me what else luck is.
Gideon Muriuki’s annual pay, perks and bonuses last year came to Sh370 million, making the CEO of Coop Bank, the highest paid head honcho of all listed companies at the Nairobi Securities Exchange…including Safaricom and East African Breweries, for all the booze that is the cause of the aforementioned hangover.
That dough, Sh370 million in annual pay equals earning more than Sh1 million daily or Sh42, 000 every hour daily for 365 days.
Gideon Muriuki sold 14.7 million shares of the lender with a market value of Sh160 million in the five months ended May, according to regulatory filings.
He has been selling and buying the bank’s shares over the years in transactions that have seen his stake oscillate between 1.7 per cent and two per cent.
The latest transactions reduced his holdings from two per cent in December 2019 to 1.75 per cent in May that has a market value of Sh1.1 billion
Co-op Bank ownership
While companies in dicey sectors like media were ‘crying in the toilet’ due to disruptions occasioned by digital migration, Coop Bank even shrugged off difficulties visited to banks by the interest rate capping law to nose its business north by over 12 percent on the strength of growth in non-interest income from fees and commissions from loans and advances accounting for over Sh14 billion net profit last year.
Just last year, he trousered home Sh375 million, with Sh271 million of that bonanza being bonuses
Of that bread, over Sh5 billion will be paid out as dividends with Muriuki smiling all the way to his own bank. Muriuki, being the CEO had seen the good tidings coming. In the four months to December 2019, he bought 2.4 million additional shares worth Sh37 million. Life can only be better since the interest rate capping was scrapped in November 2019, but then now Muriuki’s earning have to contend with the vagaries of reduced business by the time this pandemic is done with us.
Muriuki is used to earning salaries in the hundreds of millions annually. Just last year, he trousered home Sh375 million, money earned in 2018 with Sh271million of that bonanza being bonuses.
Muriuki is the largest individual shareholder of CIC Insurance with a 5.04 percent stake valued at Sh132 million
Muriuki is credited with turning the bank around and growing it to be Kenya’s third-biggest lender by earnings and assets size hence his ultimate reward. Muriuki joined Coop bank in 2001 meaning he has been the head honcho for 18 years. Now, do the math of how much that translates to if his pay last year is any measure.
The bank explained that his eye watering annual salary was because “the group has invested in a performance-driven reward structure, and the board has rewarded tremendous growth and transformation of the bank.” Muriuki has risen through the ranks since joining Coop bank in 1996, as a senior corporate manager on his way to the corner office in 2001.
At the time, Coop bank had made a loss of Sh 2.3 billion as it was still smarting from the 1998 terrorist attack at the American Embassy which neighboured its headquarters at ‘Bell-Bottom House’ along Haile Selassie Avenue in Nairobi.
It was forced to relocate and ‘Bell-Bottom House’ remained shut to allow for renovation and psychological healing. The asset base then stood at Sh 25 billion. His mandate was to turn it around. And the head honcho with a bachelor’s degree in mathematics, did see to it that Coop turned in its first net profit of Sh 164.7 million in 2002.
In the time Muriuki has been around, Coop bank was listed at the NSE and asset base has grown to over Sh425 billion today.” Coop bank has also made forays in South Sudan, Ethiopia besides owning 26.5 percent of CIC Insurance Group. Muriuki, in turn, is the largest individual shareholder of CIC Insurance with a 5.04 percent stake valued at Sh132 million.
Last month, Co-operative Bank of Kenya announced a four percent decline in profit after tax through the first six months of the year to Ksh.7.2 billion.
The slight decline in earnings was attributed to the lender’s higher provisioning for expected credit losses on loan issuance in line with the IFRS-9 accounting standards and risks presented by the Covid-19 pandemic.
Loan loss provisioning in the period rose by 57.9 percent to Ksh.1.87 billion from Ksh.1.18 billion last year.
The bank’s non-interest funded income further retreated by five percent to Ksh.8.3 billion from Ksh.8.3 billion.
Total operating income grew by five percent to Ksh.24.2 billion from Ksh.23 billion with net interest income expanding by 12 percent to Ksh.15.9 billion.
Other CEOs in the league of Gideon Muriuki is KCB Group CEO Joshua Oigara. That means financial services is a good sector to mint some dough. By 2018 and little has changed, Oigara’s salary and perks stood at Sh273 million-Sh20 million more than Standard Group made as a company in the same period. Oigara was thus financially better off than all the shareholders and employees of Standard Group combined!
The salaries of Oigara and Muriuki are more than twice and thrice more than that of EABL Managing Director Andrew Cowan who last year took home Sh115 million.