MTN Dishes Out Huge Remunerations to CEO, Others

Africa’s leading telecoms company MTN has made news again with the huge sums of remunerations its top management staff received in 2021. The Group CEO Ralph Mupita earned total remuneration in the 2021 financial year of R84.2-million, the telecommunications giant’s integrated annual report, published on Monday, shows – and he wasn’t the only one of its top executives to get handsomely rewarded for their work.

Mupita’s 2021 financial year remuneration is an increase of 133% over what he received the year before.

Ralph Mupita, the MTN Group President and Chief Executive
Ralph Mupita, the MTN Group President and Chief Executive

“The difference of remuneration received in 2021 compared to 2020 was attributed to improved performance outcomes between the two years and his promotion to group president and CEO, effective 1 September 2020,” MTN explained in the report.

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Chief operating officer Jens Schulte-Bockum received total remuneration of R67.4-million

Between 2020 and 2021, service revenue improved by 18.3% to R171.8-billion, while earnings before interest, tax, depreciation and amortisation – a measure of operating profit – jumped by 23.7% to R80.8-billion. During the year, Mupita “overachieved” on the metrics of asset transformation and equity returns, MTN said. He also met his targets in many other areas.

Mupita’s basic salary in 2021 was R15.4-million, up from R12-million in 2020. Short-term incentives amounted to R29-million, from R17.7-million previously. Long-term incentives (LTI) were R37.8-million, from R5.3-million – up 616%, and the biggest contributor to the sharp rise in his total remuneration.

“The increase in LTI reflected between 2020 and 2021 financial year is due to the improved performance conditions outcomes and the group share price performance between the two periods as at settlement dates,” MTN said.

Chief financial officer Tsholofelo Molefe, meanwhile, received total remuneration of R23.9-million, made up of a salary of R6.5-million, short-term incentives of R11-million and a sign-on bonus of R5.8-million (paid in lieu of the forfeiture of a performance bonus at Telkom, her previous employer).

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Chief operating officer Jens Schulte-Bockum received total remuneration of R67.4-million, the vast bulk of this coming in the form of short- and long-term incentives (R55.6-million). He received a salary of R9.9-million.

Board chairman Mcebisi Jonas was paid R5.9-million for his services, which included R1.3-million for his participation in a strategy session. Jonas’s retainer was R3.1-million.

Former MTN South Africa CEO Godfrey Motsa, who resigned at the end of the financial year, received a total remuneration of R51.4-million. This was made up of a salary of R7.6-million, short- and long-term incentives totalling R31-million and other benefits of R12-million. These “other benefits” included compensation comprising notice pay and a restraint-of-trade agreement.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry