In a financial year that concluded on March 31, 2023, Safaricom’s CEO, Peter Ndegwa, witnessed a remarkable surge in his annual salary.
His total compensation reached an impressive Ksh 313.1 million, marking an 83 percent increase from the previous year.
This substantial rise in Ndegwa’s earnings coincided with a 13.25 percent increase in total salaries for Safaricom’s directors, which reached Ksh 534 million.
Breaking down Peter Ndegwa’s earnings, we find that his basic salary amounted to Ksh 95.24 million, complemented by a substantial bonus of Ksh 196.27 million.
Additionally, he received non-cash benefits totaling Ksh 21.60 million.
Following closely in the list of top earners at Safaricom is Chief Finance Officer Dilp Pal, with a total annual pay of Ksh 115.34 million.
His basic salary stood at Ksh 57.94 million, coupled with bonuses of Ksh 39.67 million and non-cash benefits of Ksh 17.73 million.
Comparing Ndegwa’s recent earnings to the previous financial year, we observe that in March 2022, he earned Ksh 288.9 million, marking a substantial 43 percent increase from the Ksh 202 million he received in the 2020 financial year.
This translates to an average monthly income of Ksh 24.075 million.
Notably, Ndegwa received Ksh 178.8 million in bonuses during the year, representing a noteworthy 98 percent increase from the Ksh 90 million he earned in the 2021 year.
It’s worth mentioning that Ndegwa’s initial salary as Safaricom CEO in 2021 exceeded the final salary of the late Safaricom CEO, Bob Collymore, by Ksh 590,000.
For the financial year that concluded in March 2022, Safaricom allocated Ksh 471.5 million for directors’ remuneration, showcasing a slight increase from the Ksh 469.7 million in the previous year.
Safaricom justifies its remuneration policy, which was established in 2018, by comparing it to an independent survey and benchmarking it against peer organizations in the market.
The company’s policy aims to reward performance and align compensation with the company’s short-term and long-term objectives
Despite the increase in salaries, Safaricom faced a 14 percent rise in salary costs, reaching Ksh 17.1 billion from Ksh 15 billion the previous year.
Management cited competition from fintech companies as a challenge in retaining key talent.
Currently, Safaricom employs approximately 5,941 individuals under the leadership of Peter Ndegwa.
Safaricom’s CEO, Peter Ndegwa, has seen a substantial increase in his annual salary, reflecting the company’s commitment to rewarding performance and aligning compensation with its strategic goals.
This development comes amidst a challenging landscape with rising salary costs and competition from fintech companies.
As Safaricom continues to grow and evolve, it remains a key player in the telecommunications and technology industry in Kenya.