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Shareholders agree to increase remuneration for company chairman, directors by 20%
Kampala, Uganda | JULIUS BUSINGE | Shareholders of dfcu limited voted overwhelmingly to increase the pay for the company chairman and directors during their 58th Annual General Meeting held at Serena Hotel on July 6.
The virtual AGM, attended by 685 shareholders, increased the annual remuneration of the company chairman by 20% from US$25, 000 (approx.Shs92.2million) to US$30, 000 (approx.110million).
The directors annual pay was raised by the same percentage from US$12, 500 (approx.Shs46million) to US$ 15, 000 (approx.55million).
In addition, committee meeting fees for the two categories was raised by 11% from US$950 (approx.3.5million) to US$1050 (approx.3.8million) for the chairman and 14% for directors – from US$700 (approx.2.5million) to US$800 (approx.2.9million).
According to the company’s annual report, dfcu Limited’s Board chairman works with six other directors to offer an oversight role and a strategic direction for the company.
Investment experts say such a pay rise is justifiable and is an industry practice given the back-end role that directors play using their many years of industry experience to support the growth of business.
dfcu’s directors, chairman
The company’s chairman is Jimmy Mugerwa. He is a Senior Business leader with over 27 years’ of experience across Africa and Europe. Mugerwa joined the Board in 2022.
The directors are; Christine Akello Echookit. Echookit joined the board in 2022. She possesses 24 years working experience having served in various entities including NEMA, URA, UCB (currently Stanbic Bank), and Uganda Industrial Properties Limited.
The other director is Kironde Lule. Kironde joined the board in 2011. He has over 30 years of experience in financial management and auditing. He served as Finance Director in the Aga Khan Foundation (USA), ICF (Tanzania) among other places.
Friedrich Pelser, is another director. Pelser joined the board in 2018. He was re-elected to the same board at this year’s AGM. He is a Chartered Accountant with over 20 years of work experience. He has extensive experience in African financial institutions, investment banking, and private equity.
Barbara Teddy Arimi is another female on the board. Arimi joined the Board in 2019 and was re-elected at the July 6 AGM to continue serving. She is the Head of Marketing and Corporate Affairs at the National Social Security Fund and is a member of the Board of Directors of the CEO Apprenticeship Program Alumni Association.
The other female on the board is Aminah Zawedde. She joined the board in 2020. She has 15 years of experience in the information technology services sector both as an academician and as a digital transformation advisor.
The last director listed in the annual report is George Ochom (general manager). He was appointed GM at the start of 2018. Ochom has 30 years of banking experience with dfcu and other lenders.
Other resolutions
The other ordinary resolutions passed by the shareholders are; the Board of Directors’ recommendation to pay a final dividend of Shs8.19 per share less withholding tax for the year ended December 31, 2022. In total, the company will pay approx.Shs6.2bn as dividend for the year down from Shs15bn that was paid in 2019, according to Ochom.
The shareholders also re-appointed Ernst and Young as the External Auditors for the year
2023. The directors would negotiate and approve their remuneration.
Earlier in the year, the company’s management reported that, despite a challenging global economic environment, dfcu reported robust financial results for the financial year ending December 31, 2022 with its profit after tax growing by 217% year on year. Loan impairments were reduced by 41%. Total assets grew by 3% from Shs3.13 trillion to Shs3.24 trillion. There was a 15% growth in the number of borrowing customers. Customer deposits grew by 6% driven by current and savings account deposits. Management said there was improved customer deposit mix which resulted in a 10% reduction in interest expense; and that substantial investment in government securities grew the portfolio by 63%, as part of the focus to diversify the asset base.
Mugerwa (the chairman board of directors) praised the company’s performance.
He said: “Our business remains very strong, and our trading subsidiary dfcu Bank has consistently maintained strong capital ratios. The core and total capital ratios of 24.5 % and 25.3% respectively are well above the regulatory capital requirements of 13% and 15% respectively.”
During the year, dfcu continued to make a difference in the community with several initiatives in the areas of agriculture, women in business, and financial inclusion and showed greater importance to Environmental, Social, and Governance programs (ESG).
Through the Agribusiness Development Centre, the company expanded its support to agribusinesses with capacity building, provision of credit, and value chain financing.
Looking ahead, Mugerwa said, the company will focus on executing its strategy anchored on transforming lives and businesses in Uganda whilst managing credit and other risks better, investing in technology, and growing the people.
