CEO backs fat perks for senior executives

Mr Kihara backs fat perks for CEOs
Commercial banks’ Chief Executive Officers deserve bonuses despite the struggling economies because they had worked for the payments, according to Barclays Bank Tanzania Limited Managing Director Maina Kihara.

Commercial banks’ CEOs have lately come under-fire globally for their alleged greed in pocketing bonuses even when the economies were struggling.

Mr Maina told an African Medical Research Foundation five year business plan launching ceremony in Dar es Salaam yesterday that globally media outlets are dominated by news that attack banking senior executives who take home handsome checks in bonuses as the banks close their financial books.

“In the UK, a senior executive had to let go of his bonus which he had worked for because of criticism,” Mr Maina said while assuring AMREF that Barclays Bank Tanzania Limited will continue being a committed partner which invests in community health provided there are returns.

Last week, CEO of Britain’s second-largest bank, Royal Bank of Scotland, Stephen Hester declined to collect his 1.5 million US dollars (over 2bn/-) bonus check after House of Commons opposition lawmakers vowed to put it to a vote.

The bank’s board argued that RBS’ CEO bonus was reasonable, especially since his base pay of 1.9 million US dollars (about 3bn/-) was lower than that of most comparable CEOs. 

But many lawmakers rejected that logic, saying that since RBS was bailed out heavily in 2008 and is now mostly public-owned, it should focus on paying back British taxpayers.
Source: The Daily News,www.dailynews.co.tz, reported by Finnigan wa Simbeye
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