NSE Productivity/Surplus Paid to council Members in 2008 Should be Refunded

Reviewing the payment schedule of N480 for productivity/surplus bonuses to NSE Council members for productivity/surplus in 2008 on Proshareng.com left me baffled.

Reviewing the payment schedule of N480 for productivity/surplus bonuses to NSE Council members for productivity/surplus in 2008 on Proshareng.com left me baffled.  Although the schedule reflected productivity payments from 2005 through 2008, I was only curious about payments made in 2008 because the dismal performance of the NSE all share index in 2008 guaranteed that non members of the NSE council members deserved any productive/surplus payment.  The list of council members who received productivity/surplus payments in 2007/2008 are highlighted below:

While I am not against the council members getting paid remuneration for any work performed at the NSE,  it is ridiculous for the NSE to pay council members for productivity/surplus bonuses while the exchange was hemorrhaging and investors stock portfolios were depleted in 2008 based primarily on deceptive schemes and practices employed by some listed firms and approved by the NSE and its council members.  

In 2008, the NSE all share index began the year at 58,779.77 and closed at 31,450.78, representing a decline of 27,328.99 or 46.49%. Additionally, comparing the NSE all share index high of 66,371.2 attained on March 5, 2008 and the market close on December 31, 2008, the all share index lost 34,920.42 or 52.6% as reflected in the graph below:

Additionally in 2008 the NSE capitalization lost N3.3 trillion or 32.3% as reflected in the graph below:

Although the productivity/surplus payment to NSE council members declined by N270, or 36% between 2007 and 2008, it is incomprehensible that the NSE will make any payments to council members for productivity when the NSE all share index and the combined capitalization of all listed stocks declined by 52.6% and 32.3% respectively.

The SEC and the current NSE management team should investigate the payments of productivity/surplus bonuses to the council members, and most of the members should refund the amounts paid to them because the payments are inappropriate considering the dismal performance the NSE experienced in 2008. What the NSE did is akin to a corporation paying bonuses to employees who performed below set standards. This is an interesting situation and it is on the SEC to do what is right for shareholders because these council members should not be compensated for any lack luster performance year.