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Equity Bank Q1 2016 Results
Rank: Elder Joined: 7/22/2009 Posts: 7,451
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mkate_nusu wrote:Othelo wrote:Impunity wrote:Ericsson wrote:Under the new rules being drafted by CBK governor bank CEO's term limits will be limited to either two terms of 3-years each,4 years or 5 years each so that maximum tenure is 10 years.
That means James Mwangi may have to exit as he would have breached the law. In case of @James Mwangi, will the new law apply retroactively? Why the focus and concentration on JM, while there are many crooked CEOs out there cc. @Kingdom In JM we trust. We the shareholders will vote to extend his term if Opus Dei tries to intefere with a competent management. The likes of JM are not manufactured every 10 yrs. Co-op shareholders and the rest can however breathe a sigh of relief Nicely put @mkate_nusu. We are beyond happy with James Mwangi as CEO. This proposed blanket limit is not well thought out in my opinion. We should look for more creative methods to deal with the problems bedevilling the Banking sector. Imagine if Warren Buffet was forced to serve for 10 years at the helm. My point? Supporting @mkate_nusu assertion that there are some people you just don't manufacture every 10 years. Deal with rogue fellows individually. Some of us are extremely happy with whoever is at the helm!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 8/10/2014 Posts: 954 Location: Kenya
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Ericsson wrote:Under the new rules being drafted by CBK governor bank CEO's term limits will be limited to either two terms of 3-years each,4 years or 5 years each so that maximum tenure is 10 years.
That means James Mwangi may have to exit as he would have breached the law. This turns the CEO position into a presidential seat. What if shareholders want to keep a fantastic CEO? Eg DTB CEO has been doing great, James Mwangi has been doing great, Joshua Oigara will have to retire before he is even retiring age yet so far the bank is doing great. Stupid rules....CBK wants to run banks instead of the shareholders
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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watesh wrote:Ericsson wrote:Under the new rules being drafted by CBK governor bank CEO's term limits will be limited to either two terms of 3-years each,4 years or 5 years each so that maximum tenure is 10 years.
That means James Mwangi may have to exit as he would have breached the law. This turns the CEO position into a presidential seat. What if shareholders want to keep a fantastic CEO? Eg DTB CEO has been doing great, James Mwangi has been doing great, Joshua Oigara will have to retire before he is even retiring age yet so far the bank is doing great. Stupid rules....CBK wants to run banks instead of the shareholders True true!!! And worse, this will not solve anything!!! 10 years is more than enough for a rogue CEO to do whatever he wants!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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MaichBlack wrote:watesh wrote:Ericsson wrote:Under the new rules being drafted by CBK governor bank CEO's term limits will be limited to either two terms of 3-years each,4 years or 5 years each so that maximum tenure is 10 years.
That means James Mwangi may have to exit as he would have breached the law. This turns the CEO position into a presidential seat. What if shareholders want to keep a fantastic CEO? Eg DTB CEO has been doing great, James Mwangi has been doing great, Joshua Oigara will have to retire before he is even retiring age yet so far the bank is doing great. Stupid rules....CBK wants to run banks instead of the shareholders True true!!! And worse, this will not solve anything!!! 10 years is more than enough for a rogue CEO to do whatever he wants!!! Naikuni was CEO for 11 years. He got an 'extension' for 1 more year to tie up the loose ends for his godfathers. James Mwangi types [owner-managers] should be overseen by a strong board BUT left alone to run the businesses. Another is Bharat Thakrar. And even Pradeep Paunrana. Non-owner managers like Oigara, Naikuni, etc should have terms. Why? They are building networks that supply goods/services but have NO ownership and once they leave the holes appear. Look at KQ and Uchumi. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 8/10/2014 Posts: 954 Location: Kenya
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VituVingiSana wrote:MaichBlack wrote:watesh wrote:Ericsson wrote:Under the new rules being drafted by CBK governor bank CEO's term limits will be limited to either two terms of 3-years each,4 years or 5 years each so that maximum tenure is 10 years.
That means James Mwangi may have to exit as he would have breached the law. This turns the CEO position into a presidential seat. What if shareholders want to keep a fantastic CEO? Eg DTB CEO has been doing great, James Mwangi has been doing great, Joshua Oigara will have to retire before he is even retiring age yet so far the bank is doing great. Stupid rules....CBK wants to run banks instead of the shareholders True true!!! And worse, this will not solve anything!!! 10 years is more than enough for a rogue CEO to do whatever he wants!!! Naikuni was CEO for 11 years. He got an 'extension' for 1 more year to tie up the loose ends for his godfathers. James Mwangi types [owner-managers] should be overseen by a strong board BUT left alone to run the businesses. Another is Bharat Thakrar. And even Pradeep Paunrana. Non-owner managers like Oigara, Naikuni, etc should have terms. Why? They are building networks that supply goods/services but have NO ownership and once they leave the holes appear. Look at KQ and Uchumi. Term limits dont help. If a CEO wants to massacre the company they will just do it a whole lot faster
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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watesh wrote:VituVingiSana wrote:MaichBlack wrote:watesh wrote:Ericsson wrote:Under the new rules being drafted by CBK governor bank CEO's term limits will be limited to either two terms of 3-years each,4 years or 5 years each so that maximum tenure is 10 years.
That means James Mwangi may have to exit as he would have breached the law. This turns the CEO position into a presidential seat. What if shareholders want to keep a fantastic CEO? Eg DTB CEO has been doing great, James Mwangi has been doing great, Joshua Oigara will have to retire before he is even retiring age yet so far the bank is doing great. Stupid rules....CBK wants to run banks instead of the shareholders True true!!! And worse, this will not solve anything!!! 10 years is more than enough for a rogue CEO to do whatever he wants!!! Naikuni was CEO for 11 years. He got an 'extension' for 1 more year to tie up the loose ends for his godfathers. James Mwangi types [owner-managers] should be overseen by a strong board BUT left alone to run the businesses. Another is Bharat Thakrar. And even Pradeep Paunrana. Non-owner managers like Oigara, Naikuni, etc should have terms. Why? They are building networks that supply goods/services but have NO ownership and once they leave the holes appear. Look at KQ and Uchumi. Term limits dont help. If a CEO wants to massacre the company they will just do it a whole lot faster Im getting dissappointed by opus despite high regards I have for him. He should find another way to empower the shareholders to have a right to remove rogue CEO but not make term limits thing. Though in a way I would love such policies to hit banks like cooperative bank where ceo runs the bank like a kiosk with no growth plan apart from constant cost cuttings to grow books
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Rank: Veteran Joined: 8/10/2014 Posts: 954 Location: Kenya
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Lending rates getting capped at 4% above CBK benchmark....so what happens to Equitel loans? Its way above that 4% limit and much harder to impose so many fees on it
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Rank: Member Joined: 5/30/2016 Posts: 332 Location: Kayole
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EQTY ready to test 40 resistance KEGN, KPLC, KQ, SCOM
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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watesh wrote:Lending rates getting capped at 4% above CBK benchmark....so what happens to Equitel loans? Its way above that 4% limit and much harder to impose so many fees on it President Uhuru is not going to sign that bill!!! Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs. Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left. And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion??? Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 3/26/2012 Posts: 985 Location: Dar es salaam,Tanzania
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MaichBlack wrote:watesh wrote:Lending rates getting capped at 4% above CBK benchmark....so what happens to Equitel loans? Its way above that 4% limit and much harder to impose so many fees on it President Uhuru is not going to sign that bill!!! Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs. Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left. And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion??? When he was the finance minister in 2011,he objected the Donde bill. CS treasury,a friend to the president of Kenya and CBK Governor are opposed to the bill
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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Metasploit wrote:MaichBlack wrote:watesh wrote:Lending rates getting capped at 4% above CBK benchmark....so what happens to Equitel loans? Its way above that 4% limit and much harder to impose so many fees on it President Uhuru is not going to sign that bill!!! Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs. Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left. And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion??? When he was the finance minister in 2011,he objected the Donde bill. CS treasury,a friend to the president of Kenya and CBK Governor are opposed to the bill Times have changed. Kenyans are baying for bank blood. COTU have also weighed in.. This one will be a real test to the presidency.
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: New-farer Joined: 12/1/2014 Posts: 45 Location: Nairobi
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Metasploit wrote:MaichBlack wrote:watesh wrote:Lending rates getting capped at 4% above CBK benchmark....so what happens to Equitel loans? Its way above that 4% limit and much harder to impose so many fees on it President Uhuru is not going to sign that bill!!! Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs. Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left. And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion??? When he was the finance minister in 2011,he objected the Donde bill. CS treasury,a friend to the president of Kenya and CBK Governor are opposed to the bill Glad the president has found it wise to consult on the whole thing before he makes the decision. Clearly the bill mover ought to have done so before. At least they should have analysed why the bill have never passed thru for the prior attempts. Then they analyse what it means to cap rates in a liberal market. Check what efforts has the regulator brought or is bringing into place to reduce the borrowing cost. Review (with an objective) the MPC effectiveness in the transmission of the rates to the borrower. Economic experts have clearly said such a bill is detrimental to the growth of the economy as well as possible reversion of gains made the industry in the free economy. Fact based and impact based analysis should precede/guide such kind of bills in the house.
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Rank: Member Joined: 5/6/2014 Posts: 268 Location: Nairobi, Kenya
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Emerger wrote:Metasploit wrote:MaichBlack wrote:watesh wrote:Lending rates getting capped at 4% above CBK benchmark....so what happens to Equitel loans? Its way above that 4% limit and much harder to impose so many fees on it President Uhuru is not going to sign that bill!!! Any finance/economics guy will tell it would be a tragedy to individual loan seekers and SMEs. Interest rates among other things depend on the risk profile of the client. If the rate is capped, the banks would focus on the least risky customers first - the government and blue chip companies. SMEs and individuals would follow if there is money left. And why would I want to lend to 10,000 entities Kshs. 100,000/= each while there is a single entity (with a better risk profile) that is willing to take the entire billion??? When he was the finance minister in 2011,he objected the Donde bill. CS treasury,a friend to the president of Kenya and CBK Governor are opposed to the bill Glad the president has found it wise to consult on the whole thing before he makes the decision. Clearly the bill mover ought to have done so before. At least they should have analysed why the bill have never passed thru for the prior attempts. Then they analyse what it means to cap rates in a liberal market. Check what efforts has the regulator brought or is bringing into place to reduce the borrowing cost. Review (with an objective) the MPC effectiveness in the transmission of the rates to the borrower. Economic experts have clearly said such a bill is detrimental to the growth of the economy as well as possible reversion of gains made the industry in the free economy. Fact based and impact based analysis should precede/guide such kind of bills in the house. Consult on the obvious? Price Cap is the only solution to these rogue banks. Unfortunately UK is an interested party. Eagerly waiting for his take.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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@Emerger Politicians when it comes yo money matters are never for the interest of the common mwananchi. It's for their own interest and that is why they were united in the motion to pass the bill Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/4/2016 Posts: 1,996 Location: Kitale
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If Uhuru muigai,will refuse to sign this bill into law,i will vote for him next year. Towards the goal of financial freedom
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Ericsson wrote:@Emerger
Politicians when it comes yo money matters are never for the interest of the common mwananchi.
It's for their own interest and that is why they were united in the motion to pass the bill I mentioned it earlier and a character disrupted my school of thoughts .the only time these guys unite is when they are having pay increase motion or their benefits is on the line. In this case most of them aren't coming back and there is a huge back log of loans they will have to pay after being jobless so bring rates down to favor us too. I hate their gusto man
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Rank: Member Joined: 8/27/2015 Posts: 138 Location: Harare
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I doubt this policy will have any real effect. A smart bank will create a holding company structure. Appoint a CEO for the Kenyan subsidiary based on the CBK rules and have a free-hand in the appointment of the Group CEO. In the case of Equity, JM will still make the decisions as CEO of the holding company and implement these through the Kenyan subsidiary CEO. It is actually poor corporate governance from the perspective that it will discourage owner-managers which is key in the success of any great company. Investment philosophy development in progress...
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Rank: Member Joined: 12/11/2006 Posts: 874
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This will be a mega investor briefing “Invest in yourself. Your career is the engine of your wealth.”
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Rank: Member Joined: 1/31/2007 Posts: 303
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What time is this briefing???
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Rank: Member Joined: 12/11/2006 Posts: 874
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what nonsense is this im seeing on twitter With hash tag #JamesMwangiTheSexPest “Invest in yourself. Your career is the engine of your wealth.”
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