A survey of stock based compensation schemes for employees of public companies in Kenya
Abstract
This is a survey seeking to establish the extent to which stock based employee
compensation schemes are used in public companies in Kenya. The study covered a
sample of thirty-nine companies listed in the Nairobi Stock Exchange under the main
investment market segment (MIMS). A questionnaire was administered to all the
companies in the sample. However only twenty-six companies responded giving a
response rate of sixty seven percent which was considered adequate for the study.
From the survey it is evident that only thirty one percent of the firms that responded have
stock based compensation. These firms are both local and foreign owned and have their
compensation schemes operating from their parent countries and covering only the toplevel
executives and to a small extent the middle level management.
Therefore we can deduce that stock based compensation is a recent development in
Kenya with most schemes being less than five years old. The schemes in use include
incentive stock options, discount stock options, premium stock options and employee - stock purchase plans.
Citation
MBAPublisher
School of Business, University of Nairobi
Description
Master of Business Administration