Telkom CEO Sipho Maseko’s big payday

Telkom CEO Sipho Maseko received more than R35.4 million in remuneration in the 2021 financial year, according to Telkom’s latest integrated report.

This is an increase of around R13.62 million — or 62% — compared to 2020 when Maseko was paid R21.8 million.

His 2021 financial year remuneration included the following:

  • A guaranteed salary of R8.83 million
  • A short-term incentive (STI) bonus of R10.22 million
  • A retention fee of R10 million
  • Vested shares (LTI) totalling R6.02 million
  • Unvested shares totalling R365,000

In addition to the amounts noted above, Maseko also received pension, motor insurance, and funeral benefits.

While the CEO’s guaranteed salary remained the same over the latest reporting period, he received additional payments in the form of a short-term incentive (STI) bonus of R10.22 million and a significant retainer fee of R10 million.

He is set to be paid another R10 million retention fee in the next financial year.

Telkom recently announced Maseko would be stepping down from his position at the end of June 2022, more than nine years after his appointment as group CEO.

During the last eight years at the helm, Maseko evolved Telkom from a traditional fixed-line business to a portfolio of businesses that includes mobile, IT, and wholesale infrastructure units, as well as cellular masts and towers.

One of his achievements was propelling Telkom to the third-largest mobile network operator in the country in 2020, surpassing Cell C in terms of subscriber numbers.

He also oversaw the company’s migration from copper to fibre connectivity.

Telkom’s share price dropped by more than 8% on Friday following the announcement of Maseko’s resignation.

The other two executive directors who served at Telkom during the 2021 financial year were the former and new chief financial officers.

Current Group CFO DJ Reyneke received a total package of just over R4.91 million from his appointment in February 2021, which includes a R4 million bonus.

Reyneke took over the position from Tsholofelo Molefe, who resigned from the company in early December 2020.

Molefe served her term until 31 March 2021, as stipulated by her contract. She did not qualify for any settlement payments and forfeited all unvested shares and her STI payment for the financial year.

Her remuneration for the 2021 financial year was just under R8.42 million, a significant increase over the R5.43 million she received in 2020.

The tables below show the total remuneration packages of Telkom’s executive directors and prescribed officers.

Telkom Executive Directors
Executive GP STI LTI Retention fee Total
Sipho Maseko (CEO) R8,830,449 R10,216,240 R6,019,357 R10,000,000 R35,443,755
DJ Reyneke (new CFO) R908,539 R4,000,000 R4,910,434
Tsholofelo Molefe (former CFO) R5,600,000 R2,588,538 R8,417,780
Telkom Prescribed Officers
Officer GP STI LTI Total
NM Lekota R3,766,273 R4,500,000 R1,960,436 R10,227,005
AC Beukes R4,809,998 R5,130 000 R66,619 R10,018,908
S Taukobong R6,300,000 R6,936,300 R13,248,592
PJ Bogoshi R5,123,000 R5,322,797 R10,446,093
LM Siyo R4,000,000 R4,092,000 R8,104,292
LTS Maloba R4,000,000 R4,208,000 R8,220,292

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Telkom CEO Sipho Maseko’s big payday