{"id":783326,"date":"2024-07-19T11:09:53","date_gmt":"2024-07-19T09:09:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=783326"},"modified":"2024-07-19T11:09:59","modified_gmt":"2024-07-19T09:09:59","slug":"telkom-bosses-score-r46-million-payday","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/783326\/telkom-bosses-score-r46-million-payday\/","title":{"rendered":"Telkom bosses score R46 million payday"},"content":{"rendered":"\n<p>Telkom&#8217;s executive directors and group-prescribed officers earned roughly R45.75 million for the 2024 financial year, which equates to R125,342 a day. <\/p>\n\n\n\n<p>In its financial results for the year ended 31 March 2024, Telkom&#8217;stotal headline earnings per share (HEPS) and basic earnings per share (BEPS) increased by well over 100% to 376 and 385.5 cents, respectively.<\/p>\n\n\n\n<p>\u201cFrom 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,\u201d said the group.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>\u201cA 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,\u201d said the group.<\/p>\n\n\n\n<p>\u201cThe policy proposes a dividend payout range of 30% to 40% of free cash flow after taking into account capex investments. <\/p>\n\n\n\n<p>&#8220;The dividend will be declared and paid on an annual basis, with a resulting dividend yield comparable with local telecommunications companies.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"Vf4Kbt6rnk\"><a href=\"https:\/\/businesstech.co.za\/news\/telecommunications\/777380\/telkom-claws-its-way-back-to-profit\/\">Telkom claws its way back to profit<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Telkom claws its way back to profit&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/telecommunications\/777380\/telkom-claws-its-way-back-to-profit\/embed\/#?secret=RxVDTB7yUs#?secret=Vf4Kbt6rnk\" data-secret=\"Vf4Kbt6rnk\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Executive pay<\/strong><\/p>\n\n\n\n<p>Executive Directors, Group Prescribed Officers and management received 0% increases in line with cost-saving initiatives (FY2024 increases effective 1 April 2023).<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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. <\/p>\n\n\n\n<p>Performance targets are set within the Group\u2019s overall risk appetite as challenging but realistic to achieve value creation and outperformance.<\/p>\n\n\n\n<p>The Group\u2019s fixed salaries and benefits are set at competitive market levels. <\/p>\n\n\n\n<p>This enables the Group to attract, motivate and retain top talent to achieve our strategic business objectives.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>According to Telkom\u2019s single-figure report,&nbsp;<strong>Group CEO Serame Taukobong\u2019s pay amounted to R12.4 million.<\/strong><\/p>\n\n\n\n<p>Celliers\u2019 remuneration comprised a guaranteed pay of R9.45 million and short-term annual incentives (STIs) of R2.97 million.<\/p>\n\n\n\n<p>Telkom&#8217;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.<\/p>\n\n\n\n<p>Siyo\u2019s remuneration comprised a guaranteed pay of R5.06 million and short-term annual incentives (STIs) of R1.76 million.<\/p>\n\n\n\n<p>Of Telkom\u2019s top executives, Group CFO Nonkululeko Dlamini took home the \u2018smallest\u2019 amount among the executives at R2.7 million.<\/p>\n\n\n\n<p>However, this is because Dlamini was only appointed as the CFO on 1 December 2023. <\/p>\n\n\n\n<p>Sello Mmakau was also appointed as Group Chief Digital Officer (CDO) on 1 April 2024, meaning his salary was not included in the report. <\/p>\n\n\n\n<p>Combined,&nbsp;<strong>the seven executives received a total of R<strong>45.75<\/strong> million in salaries<\/strong>. The table below shows what each executive earned. <\/p>\n\n\n\n<figure class=\"wp-block-table\"><div class=\"table-responsive\"><table class=\"table\"><thead><tr><th>Executive<\/th><th>Role<\/th><th class=\"has-text-align-center\" data-align=\"center\">Total Remuneration<\/th><\/tr><\/thead><tbody><tr><td>Serame Taukobong<\/td><td>Group CEO<\/td><td class=\"has-text-align-center\" data-align=\"center\">R12.4 million<\/td><\/tr><tr><td>Lunga Siyo<\/td><td>Consumer and Small Business CEO<\/td><td class=\"has-text-align-center\" data-align=\"center\">R7.4 million<\/td><\/tr><tr><td>Althon Beukes<\/td><td>Openserve CEO<\/td><td class=\"has-text-align-center\" data-align=\"center\">R7.2 million<\/td><\/tr><tr><td>Melody Lekota<\/td><td>Group CHRO<\/td><td class=\"has-text-align-center\" data-align=\"center\">R5.6 million<\/td><\/tr><tr><td>Jonas Bogoshi<\/td><td>BCX CEO<\/td><td class=\"has-text-align-center\" data-align=\"center\">R6.75 million<\/td><\/tr><tr><td>Dirk Reyneke<\/td><td>Group CCP<\/td><td class=\"has-text-align-center\" data-align=\"center\">R3.7 million<\/td><\/tr><tr><td>Nonkululeko Dlamini<\/td><td>Group CFO<\/td><td class=\"has-text-align-center\" data-align=\"center\">R2.7 million<\/td><\/tr><tr><td>Sello Mmakau<\/td><td>Group CDO<\/td><td class=\"has-text-align-center\" data-align=\"center\">\u2014<\/td><\/tr><tr><td><strong>Total<\/strong><\/td><td><strong>\u2014<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>R45.75 million<\/strong><\/td><\/tr><\/tbody><\/table><\/div><figcaption class=\"wp-element-caption\"><em>1 Nonkululeko Dlamini was appointed as GCFO effective 1 December 2023.<br>2 Dirk Reyneke was appointed as Group Chief of Capital Projects effective 1 December 2023.<br>3 Sello Mmakau was appointed as Group Chief Digital Officer effective 1 April 2024.<\/em><\/figcaption><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/782969\/the-woman-running-a-r300-billion-financial-empire-in-south-africa\/\">The woman running a R300 billion financial empire in South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Telkom&#8217;s executive directors and group-prescribed officers earned big paydays for the 2024 financial year. <\/p>\n","protected":false},"author":10,"featured_media":695809,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[853,65],"class_list":["post-783326","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-south-africa","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/783326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=783326"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/783326\/revisions"}],"predecessor-version":[{"id":783365,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/783326\/revisions\/783365"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/695809"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=783326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=783326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=783326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}