Kenyan top executive Jeremy Awori has received $850,800 (KSh93.20 million) in compensation from Absa Bank Kenya Plc at the end of its 2020 financial year.
Awori, who has been the commercial bank’s managing director since 2012 when he replaced Adan Mohammed, earned a total remuneration of KSh93.20 million ($850.800), including a base salary of KSh35.34 million ($322,703) and a bonus of Ksh26.87 million ($245,388) from the Nairobi-based bank.
His remuneration for the period is split into a fixed salary of KSh65.74 million ($600,320) and a variable remuneration of KSh27.44 million ($250,600).
Compared to his previous year’s earnings of KSh115.52 million ($1.05 million), Awori’s remuneration in 2020 fell by nearly 20 percent, as his variable remuneration, which is based on the performance of the bank and the shareholder’s wealth, declined by almost 40 percent.
Figures contained in the bank’s 2020 annual report revealed that his variable remuneration in the period fell from KSh45.60 million ($415,700) in 2019 to KSh27.44 million ($250,600).
Absa Bank Kenya, formerly Barclays Bank Kenya Limited, is a commercial bank based in Kenya. It operates as a subsidiary of the South Africa-based Absa Group Limited.
The bank in 2020 recorded a 44-percent decline in profit from KSh7.50 billion ($68.35 million) in 2019 to KSh4.16 billion ($37.91 million) due to the COVID-19 pandemic, which disrupted economic activities in 2020.
Meanwhile, its profit in Q1 2021 improved from KSh1.83 billion ($16.68 million) to KSh2.28 billion ($20.78 million) as the bank recovered despite its challenging operating environment.
Under Awori, Absa Bank Kenya’s total assets and revenue have grown from KSh184.83 billion ($1.68 billion) and KSh155.24 billion ($1.41 billion) in 2012 to KSh379.44 billion ($3.46 billion) and KSh334.35 billion ($3.05 billion) in 2020.
However, the growth in the bank’s assets and liabilities has not translated to growth in earnings, as the bank’s earnings fell from KSh8.74 billion ($79.63 million) in 2012 to KSh3.75 billion ($34.17 million).
The bank’s net-interest income expanded from KSh18.15 billion ($165.40 million) in 2012 to KSh23.28 billion ($212.14 million) in 2020.