Telkom CEO Sipho Maseko scores R27 million payday

 ·24 Jul 2018
Sipho Maseko

Telkom has published its integrated report for the 2018 financial year, revealing what the telco group paid its top executives.

According to the report, Telkom CEO Sipho Maseko was paid a total package of R27.2 million for the 2018 financial year, comprising a basic salary of R8.05 million, a short-term incentive bonus of R7.58 million and a long-term incentive bonus of R11.56 million.

Former CFO, and new CIO Deon Fredericks scored a total pay of R13.6 million for the period, taking the total pay to the top two executives to R40.8 million.

Telkom paid a further R113.2 million to 10 prescribed officers, including those who have since left the company, and those who have moved up the ranks.

Deputy CFO Tsholofelo Molefe, who has been appointed as the new CFO of the group, was paid R7.2 million, while retired chief information officer (CIO) Len de Villiers earned R14.3 million.

Other executives who have parted ways with the company – Brian Armstrong and Attila Vitai – were also paid handsomely, taking R13.6 million and R24.3 million, respectively.

The tables below outline the executive pay:

In May, Telkom reported a 6.55% drop in operating profit for the year ended March 2018, to R4.939 billion, with revenue flat at R41.018 billion.

The group reported a 19.2% decrease in profit after tax to R3.158 billion. This, it said, was mainly attributable to an increase in the taxation expense and a 3.6% decrease on earnings before interest, taxation, depreciation and amortisation (EBITDA) of R10.544 million

This resulted in an 18.4% decrease in headline earnings per share (HEPS) to 597 cents.

Mobile growth was strong, with consumer revenue up 5.9%, driven by a 47.2% growth in mobile service revenue for the year ended March 2018. The growth in the mobile business was supported by 30.2% growth to 5.2 million subscribers, with the blended average revenue per user (ARPU) increasing by 10.2% to R98, Telkom said.

Read: Naspers boss scores massive R164 million payday

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