Telkom bosses score R46 million payday

 ·19 Jul 2024

Telkom’s executive directors and group-prescribed officers earned roughly R45.75 million for the 2024 financial year, which equates to R125,342 a day.

In its financial results for the year ended 31 March 2024, Telkom’stotal headline earnings per share (HEPS) and basic earnings per share (BEPS) increased by well over 100% to 376 and 385.5 cents, respectively.

“From a loss position in the prior year, profit for the year also increased by more than 100% to R1.9 billion, boosted by the non-recurrence of once-off restructuring costs and lower depreciation, while higher interest rates increased net finance costs compared to the prior year,” said the group.

Telkom is also looking to return cash to shareholders after sufficiently funding capex and strengthening its balance sheet. The first year-end dividend payment is targeted for FY2025.

“A revised dividend policy has been approved by the Board. The new policy will be based on available free cash flow while prioritising a strong balance sheet and future capex requirements,” said the group.

“The policy proposes a dividend payout range of 30% to 40% of free cash flow after taking into account capex investments.

“The dividend will be declared and paid on an annual basis, with a resulting dividend yield comparable with local telecommunications companies.”

Executive pay

Executive Directors, Group Prescribed Officers and management received 0% increases in line with cost-saving initiatives (FY2024 increases effective 1 April 2023).

To drive performance, senior and middle management receive a higher proportion of variable remuneration, with a greater emphasis on total GP for junior management and bargaining unit employees.

Variable remuneration consists of STIs and LTIs. It is defined as pay-at-risk as it fully depends on and closely aligns with the achievement of strategic Group and business unit scorecards.

Performance targets are set within the Group’s overall risk appetite as challenging but realistic to achieve value creation and outperformance.

The Group’s fixed salaries and benefits are set at competitive market levels.

This enables the Group to attract, motivate and retain top talent to achieve our strategic business objectives.

Guaranteed pay is influenced by the scope of the role and the knowledge, skills, and experience required. Fixed guaranteed pay comprises a basic pensionable salary, retirement provision and flexible benefits.

According to Telkom’s single-figure report, Group CEO Serame Taukobong’s pay amounted to R12.4 million.

Celliers’ remuneration comprised a guaranteed pay of R9.45 million and short-term annual incentives (STIs) of R2.97 million.

Telkom’s Consumer and Small Business CEO Lunga Siyo was the second-highest paid member of the team, taking home a single-figure total pay package of R7.4 million for the year.

Siyo’s remuneration comprised a guaranteed pay of R5.06 million and short-term annual incentives (STIs) of R1.76 million.

Of Telkom’s top executives, Group CFO Nonkululeko Dlamini took home the ‘smallest’ amount among the executives at R2.7 million.

However, this is because Dlamini was only appointed as the CFO on 1 December 2023.

Sello Mmakau was also appointed as Group Chief Digital Officer (CDO) on 1 April 2024, meaning his salary was not included in the report.

Combined, the seven executives received a total of R45.75 million in salaries. The table below shows what each executive earned.

ExecutiveRoleTotal Remuneration
Serame TaukobongGroup CEOR12.4 million
Lunga SiyoConsumer and Small Business CEOR7.4 million
Althon BeukesOpenserve CEOR7.2 million
Melody LekotaGroup CHROR5.6 million
Jonas BogoshiBCX CEOR6.75 million
Dirk ReynekeGroup CCPR3.7 million
Nonkululeko DlaminiGroup CFOR2.7 million
Sello MmakauGroup CDO
TotalR45.75 million
1 Nonkululeko Dlamini was appointed as GCFO effective 1 December 2023.
2 Dirk Reyneke was appointed as Group Chief of Capital Projects effective 1 December 2023.
3 Sello Mmakau was appointed as Group Chief Digital Officer effective 1 April 2024.

Read: The woman running a R300 billion financial empire in South Africa

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