MTN boss bags R13m bonus
CEO of MTN Group, Phuthuma Nhleko, was paid a bonus of R13m in 2008, a 39% increase on the R9.358m he earned for performance in 2007.
According to MTN’s annual report, published last week, group finance director Rob Nisbet was paid a R5.75m bonus (2007: R3.425m) in 2008, and chief operating officer Sifiso Dabengwa was awarded a bonus of R6.25m (2007: R3.425m).
In addition to his bonus, Nhleko was paid a base salary of R6.498m, with retirement and other benefits totalling R460 000. His total remuneration was R19.958m.
Nisbet earned a salary of R3.09m, with R410 000 in retirement benefits and R241 000 in other benefits in 2008.
Dabengwa, by comparison, was paid R3.771m with R483 000 in retirement benefits and R553 000 in other benefits. He was also awarded R12.585m in share options.
The company says that performance bonuses for its executive directors are “linked to operational and financial value drivers pertaining to business performance against budget for individual operations and the MTN Group as a whole”.
MTN’s foreign non-executive directors K Kalyan and A Mikati are paid nearly four times the local directors. The fees are paid in euros. By comparison, Kalyan earned R2.019m and A Mikati R1.858m, versus an average of R542 000 for the other non-executives.
Chairman Cyril Ramaphosa earned R820 000 for his work during the year, lower than the R859 000 he was paid in 2007.
As of the end of December 2008, Nhleko had 436 820 outstanding share options in MTN Group. During the year he exercised over 2m shares. Nisbet had 833 080 options outstanding, while Dabengwa had 381 500 outstanding.
Other options outstanding as of December 2008 (shares):
- Christian De Faria 348 600
- Jamal Ramadan 384 600
- Santie Botha 155 900
- Karel Pienaar 122 460
- Paul Norman 301 780
- Bongi Mtshali 53 000
- Ahmad Farroukh 277 900
- Zunaid Bulbulia 267 020
- A Bing 74 470
MTN management salary discussion
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