Vodacom has published its integrated report for the year ended 31 March 2020, which revealed that CEO Shameel Joosub received a pre-tax salary of R43.45 million in the last financial year.
The report also showed that Joosub paid R19.55 million in tax on his salary, which the company said indicates a 45% rate of taxation rate being applied to the gross amount.
This left Joosub with a disposable income of R23.9 million, up from the R21 million he pocketed in 2018/2019.
Joosub’s pre-tax remuneration of R43,446,398 is broken down as follows:
- A basic salary of R12,060,625
- A Vodacom mobile phone benefit of R4,800
- Short-term incentive plan (STIP performance bonus) of R11,684,115
- Long-term incentive plan (LTIP share-based awards) of R14,322,825
- Dividends of R5,374,033
The dividends comprise the total of cash receipts during the financial year based on previous unvested FSP LTIP awards and cash settled in lieu of dividends on Vodafone matching shares.
Vodacom has also provided details on how it calculates its CEO’s salary, which includes his basic salary, short-term incentive plan, and long-term incentive plan.
These are detailed below:
- The maximum STIP for Joosub is two-times the target. This is the maximum business performance multiplier as no personal multiplier is applicable.
- Joosub does not have an individual performance multiplier on LTIP, hence the maximum represents the potential maximum of shares that could vest, whereas on target represents the number of shares which are anticipated to vest.
- Dividends are received in cash on all outstanding unvested LTIP awards at each dividend declaration date. Since the dividend varies from period to period, it has not been included in the pay mix depiction indicated above.
The image below shows the pay mix for Vodacom CEO Shameel Joosub.
A breakdown of Vodacom CEO Shameel Joosub’s salary
The table below shows Joosub’s total remuneration in 2018/2019 and 2019/2020.
|Shameel Joosub Salary|
|Vodacom mobile phone benefit||R4,800||R4,800||0.0%|
|Short-term incentive bonus||R9,786,500||R11,684,115||19.4%|
|Long-term incentive bonus||R12,203,533||R14,322,825||17.4%|
|Total pre-tax salary||R38,261,997||R43,446,398||13.5%|
|Total post-tax salary||R21,044,099||R23,895,519||13.5%|
Joosub donates a third of his salary to COVID-19 fight
In April, Vodacom announced that Joosub has heeded the call by President Cyril Ramaphosa and will donate a third of his salary for the next three months to the Solidarity Fund.
The fund enables individuals and organisations to contribute to the detection and prevention of COVID-19, to provide care for those that need medical care and to support those whose lives have been disrupted by the health crisis.
“President Cyril Ramaphosa set an incredible example by announcing that he would be taking a one-third pay cut for the next three months and that his entire cabinet will do the same,” said Joosub.
“I, too, will heed the President’s call by donating a third of my salary for the next three months to the Solidarity Fund and call on other CEOs to follow suit.”
“Not only is it the right thing to do but it will, in a small way, help towards South Africa’s recovery from the pandemic.”