MTN CEO scores massive R70 million payday – despite profit blow

 ·30 Apr 2024

MTN Group paid its chief executive officer, Ralph Mupita, R70.64 million in the 2023 financial year—R5.1 million less than the R75.8 million he was awarded the previous year.

In its financial results ending 31 December 2023, the Group noted that, despite MTN’s increasing revenue and customer base, its earnings and profits dropped significantly due to the massive devaluation of the Nigerian currency.

“The sharp devaluation of the Naira during the period impacted our reported results for MTN Nigeria and MTN Group,” said Mupita.

“However, the MTN group sustained a resilient performance in 2023, with solid underlying operating momentum and pleasing progress in our key strategic initiatives during a period characterised by geopolitical and macroeconomic headwinds,” said group CEO Ralph Mupita.

This progress in key strategic initiatives was highlighted in the year’s Company (CP) and team performance (TP) outcomes.

“The overall average achievement of company performance against the target was 94%. Based on the independent assessment of overall company performance against targets by EY, the Board declared a short-term incentive payment is in accordance with the approved rules,” it said.

The Group added executive director and prescribed officer performance, measured against a mix of KPIs.

“Performance against these was reviewed and validated by the Group CEO and externally audited by EY in accordance with the agreed-upon audit procedures,” it said.

These varying performances are highlighted in the infographic below.

CEO pay

Considering the performance indicators, Mupita received R70.64 million in remuneration in 2023, which is noticeably less than in 2022 and 2021.

The MTN Group president and CEO’s pay package mainly comprised a basic salary of R17.63 million, short-term incentives (R13.97 million), and awarded long-term incentives (R36.92 million), among other things.

Ralph Mupita, MTN Group CEO

It is worth noting that Mupita’s contract is split between MTN Dubai Limited and MTN Group Management Services South Africa, and he receives remuneration in US dollars and South African rands.

According to MTN’s integrated report, the fixed remuneration was converted from dollars to rands at R17.66 to the dollar, while bonuses were converted at R19.01 to the dollar.

Compared to the previous financial years, Mupita’s remuneration in 2023 was significantly less than the R75.8 million he received in 2022 and the R84 million he received in 2021.

“Ralph and his team delivered resilient performance in specific areas in a very challenging macro environment.

They achieved solid YoY momentum in key operational and financial KPIs, although some were short of the 100% target,” the Group said.

“The KPIs that exceeded the internal targets were delivery in the ESG targets, employee engagement and diversity, brand health and the management of the risk and regulatory environment,” it added.

The tables below provide a more detailed breakdown of the CEO’s remuneration in 2023 and 2022.

CEO South Africa pay

MTN’s annual integrated report includes a breakdown of the remuneration received by Charles Molapisi, CEO of MTN South Africa, which also took a hit.

Charles Molapisi, MTN South Africa CEO

Molapisi’s total remuneration amounted to R33 million, which was R1 million less than what he earned in 2022.

Although MTN acknowledges Molapisi’s overall good performance throughout the year, he failed to meet his fintech subscriber targets.

Molapisi’s remuneration in 2023 included a basic salary of R8.19 million, short-term incentives (R6.47 million), and awarded long-term incentives (R16.45 million), among other things.

“Charles achieved the 100% targets for total, active data and Ayoba subscribers, although fell short for fintech subscribers,” it said.

“The team also fell short of the 100% target for MTN SA’s adjusted HEPS and ROIC, although they scored strongly on expense efficiencies and cash upstreaming from the operation.”

The Group added that Molapisi and his team also achieved above-target outcomes for overall network performance, connected homes and reduced carbon emissions.

However, they achieved below-target outcomes for employee engagement but achieved 100% of the target for brand health.

The tables below provide a more detailed breakdown of the CEO’s remuneration in 2023 and 2022.

Read: MTN suffers major blow due to Nigeria woes

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