MTN boss scores R72 million salary despite first-ever loss
MTN Group’s executive chairman Phuthuma Nhleko has been paid a R72.2 million salary for the 2016 financial year, despite the group posting a first-ever annual loss in its 22-year history.
Nkhleko drew a salary as chairman, as well as for when he took over as executive chairman to guide MTN through its Nigeria crisis.
His non-executive director salary came to R3.98 million; he then drew a salary of R30 million for his role as executive director.
He was further granted a R38.19 million bonus for the year, taking his total earnings as executive chairman to R68.19 million, and his total earnings to R72.17 million for the year.
Nhleko’s salary was paid to Captrust Investments, the service provider MTN had entered into an agreement with to enlist the services of Nhleko in an executive role.
According to MTN, Nhleko was key to stabilising the company in the wake of the group’s Nigeria fine crisis, and his guidance led to the fine being reduced by R34 billion.
He also led the company in implementing a new R9.9 billion empowerment scheme, and in repatriating funds from Iran, among other things.
“In addition to this mixed-term contract as an executive, Mr Nhleko continued to serve as chairman of the MTN Group Limited board of directors, and as such received all related director remuneration in this regard,” MTN said.
Executive team
In total, MTN paid its non-executive directors a total of R24.23 million rand, while its executive directors got R97.9 million.
Prescribed officer salaries totalled R107.3 million, taking the total for all executives to R229.43 million – despite the group loss.
Included in the payments was a R19.56 million golden-handshake for former group CEO, Sifiso Dabengwa, who resigned in the middle of the Nigeria crisis.
Annual results
MTN Group reported a marginal 0.4% rise in revenue for the year ended December 2016, to R146.89 billion, however, it also recorded a headline loss per share of 77 cents.
Group subscribers however, increased by 3.3%, or 7.877 million, to 240.4 million while the operator delivered a final dividend of 450 cents per share.
A former CEO, Phuthuma Nhleko, took up the position as head of MTN – under the role of acting executive chairman in November 2015, after Sifiso Dabengwa stepped down when the Nigerian Communication Commission (NCC) hit the company with a $5.2 billion fine for failing to disconnect more than five million unregistered SIMs on its network.
Dabengwa, for his troubles, scored a R40 million salary in 2015, including R23.7 million ‘compensation for loss of office’.
The mobile operator appointed Rob Shuter as the new Group President and CEO of the company in June last year. He is set to take up his position no later than July this year.
Read: MTN shares advance 9% despite reporting first-ever annual loss
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