Sameer Africa managing director Allan Walmsley. Tyre distributor Sameer
Africa has raised the bar for disclosure of board of directors’ pay
among listed firms. FILE PHOTO | NMG
Summary
- Mr Walmsley’s annual pay remained frozen at Sh25.909 million in 2016 comprising Sh20.76 million in basic pay and allowances, Sh649,000 in non-cash benefits (motor vehicle, telephone allowances), and Sh4.5 million in gratuity.
- NSE firms will be forced to make public what is paid to each board member, as well as their terms of service, under fresh rules prepared by Attorney General Githu Muigai.
- Companies listed at the Nairobi bourse have traditionally not disclosed the contract terms and remuneration for board members and senior staff.
Sameer Africa has
disclosed the employment terms of its chief executive officer Allan
Walmsley, breaking ranks with its peers to become the first publicly
traded firm to meet the disclosure requirements of new rules set to come
into force by the end of this year.
The tyre trading company says Mr Walmsley has a two-year renewable contract which expires on July 31, 2018.
Mr
Walmsley’s annual pay remained frozen at Sh25.909 million in 2016
comprising Sh20.76 million in basic pay and allowances, Sh649,000 in
non-cash benefits (motor vehicle, telephone allowances), and Sh4.5
million in gratuity, according to the company’s latest annual report.
The contract can be terminated by either Mr Walmsley or the Sameer’s board of directors through a three-month notice.
“The
executive director’s (Walmsley) service contract contains covenants
which restrict his ability to solicit or deal with clients and his
ability to disclose trade secrets and confidential information during
the tenancy of his directorship,” Sameer says in the report.
Companies
listed on the Nairobi bourse will be forced to make public a breakdown
of what is paid to each board member, as well as their terms of service,
under fresh rules prepared by Attorney General Githu Muigai to enhance
transparency and corporate governance.
Kenneth
Gathuma, acting Registrar General of the Business Registration Service
at State Law Office, told Business Daily that the new regulations will
be taken to the National Assembly after the August polls for approval
and later be gazetted to take effect.
Companies listed
at the Nairobi bourse have traditionally not disclosed the contract
terms and remuneration for board members and senior staff in the absence
of a legal requirement.
ALSO READ: 7 NSE firms reveal details of CEO pay
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