The Chief Executive Officer (CEO) of a listed company in Kenya on average earns a basic monthly salary of KSh 3,625,507.00, a monthly allowance of KSh 959,691.00 and annual incentives amounting to KSh 54,571,176.00.
This is according to Executive and non-executive directors remuneration survey 2020 undertaken by PwC.
Basic salary is typically the largest share of the compensation package. A CEO also earns bonuses, long-term incentives and benefits – Non-cash compensation such as medical insurance, paid holidays or pension schemes.
A CEO also gets fringe benefits which include privileged grants which can range from a car to a cellphone.
According to the PwC survey, the general market remuneration of a Chief Finance Officer, the second most senior staff member after the CEO in many firms, is a basic monthly salary of KSh 2,317,109.00, a monthly allowance of KSh 801,500.00 and annual incentives worth KSh 21,388,832.00.
A Chairperson earns an annual fee of KSh 3,144,529.00 and an allowance of KSh 110,578.00 per meeting attended while other non-executive directors earn an annual fee of KSh 1,008,993.00. Committee chairs and committee members earn an allowance per session of KSh 73,369.00 and KSh 60,541.00 respectively.
The non-executive directors’ annual pay is composed of total sitting allowances for meetings attended, annual retainers, and benefits provided to the directors.
In the period 2018/2019 for example, the average monthly CEO salary was 326 times
the minimum wage for the banking sector and 143 times for the manufacturing sector.
In the 2019/2020, the banking sector CEO earned 339 times the minimum wage while the
manufacturing sector CEO earned 139 times the minimum wage.
This is PwC’s third edition of the Executive and Non-Executive Director’s report (ENED). The report is published every year for periods covering July 1 to June 30 of the preceding and current year, respectively.
In this years’ report, PwC has analyzed the wage gap between what the Chief Executive earns and the minimum wage.
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