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Centum pays out KSH 1 billion to employees
Rank: Member Joined: 9/14/2011 Posts: 857 Location: nairobi
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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
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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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
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Rank: New-farer Joined: 9/16/2015 Posts: 15
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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.
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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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.
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Rank: Elder Joined: 7/22/2009 Posts: 7,570
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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.
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Rank: Member Joined: 5/31/2011 Posts: 253
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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
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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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.
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Rank: Member Joined: 1/15/2010 Posts: 625
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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?
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Rank: Elder Joined: 12/4/2009 Posts: 10,778 Location: NAIROBI
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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
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Rank: New-farer Joined: 9/16/2015 Posts: 15
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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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Rank: Elder Joined: 7/22/2009 Posts: 7,570
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businesspundit wrote: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. And the worst part is that the way this is set up, they don't have to double shareholders wealth - in real sense or on paper (cooked) - to double their bonus!!! This is wrong on so many levels. Biggest losers? Shareholders!!! 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: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Centum is now an embodiment of western corporate greed in Kenya. Ladies and gentlemen of Wazua take a front seat and watch how people get shafted by wolves of Kimathi street. Life is short. Live passionately.
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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I sense this bonuses are been paid against imaginary (non-existent, cooked up) gains in NAV. One day they will run out of loopholes and ENRON will be here with us, live live. At Samsung, the employees are paid very low, and the bonuses assists them live better (Though most shareholders oppose this arrangement). Samsung has a 1% div. Yield policy and that's why its share price never improves. So shareholders suffer. Back to CENTUM, this employees must be making millions in salaries and allowances, and then they are added millions in bonuses. This is worse than what happens at Barclays Bank UK. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Member Joined: 5/14/2014 Posts: 289 Location: nairobi
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as we abstain waiting for the wedding day people are already having fun with the wife that we expect to marry. I find satisfaction in owning great business,not trading them
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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I remember Uchumi was pumped up so much including issuing of rights that the share was at 22.00 when the Dj suddenly sold his shares and in the same week Uchumi was dead .
Buyer be aware..when you see these signs know the end is near.
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Rank: Member Joined: 8/19/2015 Posts: 125
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Rank: Elder Joined: 7/22/2009 Posts: 7,570
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target1360 wrote:as we abstain waiting for the wedding day people are already having fun with the wife that we expect to marry. Centum ni kama embe. Wewe ukingoja liive, mwenzako alila na chumvi!!! 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: 6/17/2009 Posts: 1,621
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To quote what the dj said about KQ...'this is bullshit'.
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Rank: Member Joined: 12/11/2006 Posts: 896
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centum is buying 9646 acres of land from rea vipingo at a price of kshs 180,000 per acre. They will probably value this land at kshs500,000 and gift themselves with bonus out of these unrealized capital gains. Are they employees cum Brokers? They buy land using shareholders capital and pocket the capital gains on land appreciation while the share holder is told to wait, not forgetting that they are also receiving hefty salaries. Shareholders need to reject this bonus payments unanimously. Can shareholders have a say on this? “Invest in yourself. Your career is the engine of your wealth.”
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Rank: Elder Joined: 7/22/2009 Posts: 7,570
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ngapat wrote:centum is buying 9646 acres of land from rea vipingo at a price of kshs 180,000 per acre. They will probably value this land at kshs500,000 and gift themselves with bonus out of these unrealized capital gains.
Are they employees cum Brokers?
They buy land using shareholders capital and pocket the capital gains on land appreciation while the share holder is told to wait, not forgetting that they are also receiving hefty salaries.
Shareholders need to reject this bonus payments unanimously.
Can shareholders have a say on this?
Such things should have been subjected to a vote by the shareholders!!! This is a huge amount!! One billion taken out of the company pap! And that is in one year! And as you correctly point out, they will be playing with the valuation of land and property till the day the company will become a shell!!! 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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Centum pays out KSH 1 billion to employees
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