I know that many of you are yet to start earning 50K. But most of you fall under the 10K, 15K, 25K and so forth bracket. But then there are those who earn six and seven figure salaries. These are the kind of people you read on the newspapers or watch on TV programs such as Young Rich or Who Owns Kenya.
In a past article done by Business Daily, it showed just how much Kenyan CEO’s get paid.
“The list of top-earning executives whose pay the Business Daily was able to compute from the annual reports includes Housing Finance (HF) managing director Frank Ireri and Pan Africa Holdings’s Tom Gitogo,” the paper read.
It also reported that financial reports show that Mr Gitogo’s monthly pay rose nine per cent to Sh2.5 million in the year ending December 2013, from the Sh2.3 million he earned the year before.
“At Housing Finance, the monthly remuneration of Mr Ireri jumped 14.5 per cent to Sh4.9 million in the year ending December 2013, up from Sh4.2 million a year earlier,” describes the paper.
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And how does the ‘common mwanachi’ compare to this jaw dropping figures?
Nancy Wairegi, a sales executive earning ksh.20, 000 says, “I feel cheated. That is too much money. If I earned more than 20K maybe I wouldn’t be complaining. They spend the whole day in offices while we tire selling their products. I should be getting the millions not them.”
Martin Nyaboke, an assistant accountant earning Kshs.35, 000 says that the pay is fair enough if the company is making profit.
“Consider a company with 2,000 sales representatives. If you add up their pay it may actually be enough to pay two CEO’s. After all, to get to a point of being CEO requires experience and expert skills which entry level employees do not have.”
Mercy Rono* a shelf attendant at a local supermarket who earns 15,000 says that even if the pay difference is unfair the CEOs deserve it.
“It requires a wealth of knowledge and experience to handle such a position since a CEO runs the entire company. If I was to be given that position I wouldn’t accept.”
Here are more comments from The Daily Nation website:
Andy says, “Woi! I should quit my job. This just killed my spirit. And the way I was feeling good about myself.”
Baine Wamash says, “Hehe … what warrants such pay???? … And those companies ain’t blue chip per say”
Canuck adds, “Obscenely overpaid, just like Kenyan politicians. The notion that these top CEO’s are brilliant is a myth. Most of their decisions could just as easily be made by a competent top manager or a committee. Top CEO’s are a cartel that set their market price in secret meetings. When the people who hire them are confronted to explain the exorbitant salary and perks, they claim that is the price for top talent. These gluttons make 500 times the wage of the average worker in their own companies.”
Mung’etheri Mutongoria concludes by saying, “While Mr Ireri jumped 14.5 per cent to Sh4.9 million you will easily find some dedicated workers in the same company earning less than 15,000/- very interesting …”
What’s your take on this? Should salaries be harmonized to more realistic differences between employees and top management such as CEO’s? Or do you think CEOs deserve their pay?
Leave us a comment below.
Compiled by Susan Gitonga, a Communications Officer at Career Point Kenya.