R48 million for MTN boss

·30 Mar 2014

MTN Group CEO Sifiso Dabengwa walked away with a total salary of over R48 million in 2013 – more than double the R23.5 million he received in 2012.

In the company’s annual report for the year ended 2013, Dabengwa’s massive pay jump is credited to share gains of R19.2 million, along with a higher bonus and relatively small increase in base salary.

Dabengwa’s base salary was R8.9 million – up from R8.4 million in 2012.

MTN South Africa lead Zunaid Bulbulia, who took up the position in June 2013, was paid a total R7.6 million off a base salary of R2.05 million.

Bulbulia was not awarded a bonus in 2013, and earned a further R4.9 million through share gains.

Former MTN SA head, Karel Pienaar, received R8.7 million, including a R3.6 million bonus.

ANC deputy president, Cyril Ramaphosa, who resigned as a non-executive director of MTN in May 2013, got a final paycheque of R850,000 from the operator.

In its financial results for the year ended December 2013, MTN reported a 12% rise in group revenue to R137 billion; however, its South African operation saw an earnings decline.

Group subscribers increased 9.8% to 207.8 million, and data revenue increased 41.4% to R20.7 billion.

Headline earnings per share (HEPS) increased 27.3% to R13.86, and the group delivered a final dividend of 665 cents per share, with a total dividend of R10.35 per share.

Operating profit rose to R40.5 billion, from R36.7 billion before.

In South Africa, revenue dropped to R39.7 billion, from R41.3 billion in 2012, with ebitda down to R13.4 billion, from R14.5 billion before.

MTN is currently embroiled in a court case with regulator Icasa, over call termination rates.