streetwise wrote:I think there is something not right if the employees keep on earning bonuses year on year while the investor is told of capital gain which is not that great and which can actually get washed away.
At the end the employee will have his money in the bank and the investor little to show for the patience he so much demonstrated by waiting ten or so year.
I beg to differ. When they postponed paying out dividends, the stock was circa 12.50, so there have been significant capital gains since then. Secondly, what better vote of confidence do you need in the business than employees with 'skin' in the game? Besides, these bonuses are performance-based, not guaranteed.
The cash payout is not automatic and is subject to further conditions including maintaining or increasing the shareholders’ wealth each year.“It focuses the staff on performance. Everyone at Centum works like they are running their own business,” said Mr Mworia.The harder you work, the luckier you get