According to business daily, Centum execs earn about 1 million Ksh a month. That is ok with me. They then earn about 14m each in bonus last year. This is also okay. What is ridiculous is the method of calculating the bonus. It is based on appreciation in asset value which can easily be manipulated. In addition, why pay fat cash bonuses based on a non cash increase in value and yet claim you cant pay dividends..... Ukora kabisa.... And I thought wakora were only in parliament.

companies that do not pay dividends are dishonest, and here is the proof

You have to be willing to pay for quality. Simple as that. At least with Centum you know your money is not getting siphoned away a la MSC. Based on the performance they are definitely worth the money - they are definitely hustling to get this company going. Compare them with Transcentury for example, top salaries but poor execution. Ofcourse there has to be a cap on employee compensation and it makes more sense to pay the bonus in company shares than cash. It would be interesting to compare Centum compensation with other companies as well to get a feel. These guys are making 300,000 USD a year, they're definitely lucky.

The issue for me is not the amount paid out. It is the way the bonus is calculated. Why cant the bonus be based on increase in cash profits to the company. The idea of all these investments is to make a cash return. Therefore, bonus should be based on how well the execs convert the assets into cash earnings. This is a more objective way of doing things. Basing bonus on growth in asset value is deceptive, open to manipulation and gives no incentive to invest in highest cash returning assets available. Asset value means nothing. Its what the asset puts into your pocket that matters.

Good point/s by @tom_boy but @Aguy did you know Berkshire Hathaway doesn't pay dividends either while Olympia Capital does?