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Centum pays out KSH 1 billion to employees
heri
#41 Posted : Wednesday, September 16, 2015 8:09:38 PM
Rank: Member

Joined: 9/14/2011
Posts: 869
Location: nairobi
I think minority shareholders protection in Kenya is not there

Investing in companies with ownership concentration where one or two people have majority shares and GOK majority owned companies is quite risky
dunkang
#42 Posted : Wednesday, September 16, 2015 9:06:13 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
Lolest! wrote:
ngapat wrote:
What happens if the NAV declines by 20%? Do they pay a fine to the company? This is a scam

Makes me sick when i imagine that this is my biggest single investments

I read that tey take forward the losses until a positive is realised

You remember in 2012 when Centum "forgot" to announce a profits warning? Employees still got their BONUSES!

Employees get the money, shareholders get DOCTORED books!
Receive with simplicity everything that happens to you.” ― Rashi

businesspundit
#43 Posted : Wednesday, September 16, 2015 9:47:30 PM
Rank: New-farer

Joined: 9/16/2015
Posts: 15
Damn! I am working for the wrong company. Even gava is not this sweet. Where can I apply for a job here? I will even pay a finder's fee as a percentage of my bonus - of course after I get my bonus.
enyands
#44 Posted : Wednesday, September 16, 2015 9:57:32 PM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
This is just slap of on the face. Just realised that majority of shareholders aren't them it's us meaning if shafting comes down we really get shafted .over 40% percent . This is another uchumi ,HACO and any other failed business the hands has layeth on.want it to reach 60 and I offload if I'll be lucky . I'd rather do KPLC than this family oriented circus business . YOU DENY 42.16% SHAREHOLDERS BONUSES ONLY TO PLEASE THE NON SHAREHOLDERS WITH 1B .wish they did it secretly .but doing it on front paper ni madharau.hii ni matope men. Even some counties are run better than this bologna.
MaichBlack
#45 Posted : Wednesday, September 16, 2015 10:15:43 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,839
enyands wrote:
This is just slap of on the face. Just realised that majority of shareholders aren't them it's us meaning if shafting comes down we really get shafted .over 40% percent . This is another uchumi ,HACO and any other failed business the hands has layeth on.want it to reach 60 and I offload if I'll be lucky . I'd rather do KPLC than this family oriented circus business . YOU DENY 42.16% SHAREHOLDERS BONUSES ONLY TO PLEASE THE NON SHAREHOLDERS WITH 1B .wish they did it secretly .but doing it on front paper ni madharau.hii ni matope men. Even some counties are run better than this bologna.

Discuss the common factor in Uchumi, HACO and Centum (20 marks)
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Kenyan Oracle
#46 Posted : Wednesday, September 16, 2015 10:24:36 PM
Rank: Member

Joined: 5/31/2011
Posts: 262
MaichBlack wrote:
enyands wrote:
This is just slap of on the face. Just realised that majority of shareholders aren't them it's us meaning if shafting comes down we really get shafted .over 40% percent . This is another uchumi ,HACO and any other failed business the hands has layeth on.want it to reach 60 and I offload if I'll be lucky . I'd rather do KPLC than this family oriented circus business . YOU DENY 42.16% SHAREHOLDERS BONUSES ONLY TO PLEASE THE NON SHAREHOLDERS WITH 1B .wish they did it secretly .but doing it on front paper ni madharau.hii ni matope men. Even some counties are run better than this bologna.

Discuss the common factor in Uchumi, HACO and Centum (20 marks)


If you follow most of the companies Dj has ever touch, none has come out performing well. Kenatco, Uchumi and now Centum. In the end shareholders were left pissing in the wind
You lose money chasing women, but you never lose women chasing money - NAS
lochaz-index
#47 Posted : Wednesday, September 16, 2015 10:49:08 PM
Rank: Veteran

Joined: 9/18/2014
Posts: 1,127
Since the dj is the main shareholder here, how is he benefiting in this 1b bonus schematic?
The main purpose of the stock market is to make fools of as many people as possible.
mv_ufanisi
#48 Posted : Wednesday, September 16, 2015 11:04:15 PM
Rank: Member

Joined: 1/15/2010
Posts: 625
The way this bonus scheme is set up, Centum employees can sit on their hands all year and they'll still make a mega bonus because "alas real estate prices in Kenya keep going up". Given how much of this real estate they have to play with - at Two Rivers and at Rea Vipingo - that's a great place they can use to shore up profits. The better way to measure performance of this company would be to check operating profits only. Didn't Enron employees come up with a weird profit declaration system coz of this kind of incentive scheme?
Ericsson
#49 Posted : Wednesday, September 16, 2015 11:52:15 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,808
Location: NAIROBI
I'm better off being a shareholder at Kenya Re, I don't get conned this much and in broad daylight.
One day the truth will be out just like Uchumi. The company will be a shell requiring massive bailout.
Shareholders will be left with a shell, the employees will be living in mansions and driving sleek vehicles.
Cautious investors like UAP are liquidating their holdings in the company.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
businesspundit
#50 Posted : Thursday, September 17, 2015 5:39:31 AM
Rank: New-farer

Joined: 9/16/2015
Posts: 15
mv_ufanisi wrote:
The way this bonus scheme is set up, Centum employees can sit on their hands all year and they'll still make a mega bonus because "alas real estate prices in Kenya keep going up". Given how much of this real estate they have to play with - at Two Rivers and at Rea Vipingo - that's a great place they can use to shore up profits. The better way to measure performance of this company would be to check operating profits only. Didn't Enron employees come up with a weird profit declaration system coz of this kind of incentive scheme?


And this is what is potentially worse since they already got away with it. They went from 500 million to 1 billion in one financial year in bonuses.
Next year, why not double it again and go for 2 billion.
Then 4 billion next.

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