Telkom’s exclusive R10-million club

Telkom executives received excellent pay packages over the last year with most of Telkom’s top executives earning over R10 million per year.

This was revealed in Telkom’s financial results for the year to 31 March 2021, which was released today.

Over the last year, Telkom’s revenue increased 0.4% to R43.2 billion while EBITDA grew 11.7% to R11.97 billion.

Telkom’s growth was mainly driven by its mobile business. Mobile data revenue increased by 41.0% which helped to lift mobile service revenue by the 34.5% to R16.94 billion.

“Our mobile business continued its growth trajectory as we surpassed 15 million subscribers during the year,” said Maseko.

Telkom fixed-line business and BCX unit suffered declines in revenue as the national lockdown and the work-from-home response impacted fixed-voice revenues from enterprise customers.

Information technology revenue also came under pressure as corporates deferred capital expenditure and delayed projects given the increased levels of uncertainty.

Despite these challenges, the company’s share price more than doubled over the last year. Telkom traded at around R18 per share on 1 April, and on 31 March 2021 the price was over R42 per share.

This exceptional growth was mainly a result of starting from a very low base.

Telkom’s share price, like most other stocks, were hammered when the pandemic and lockdown hit. It plummeted from R96 per share in June 2019 to R17 per share in March 2020.

Telkom’s stock price rebounded, but it is still far away from where it was trading before Covid-19 arrived on local shores.

Key performance indicators (KPIs), however, do not care about reasons. Executive bonuses and benefits are typically linked to KPIs, and Telkom executives were handsomely rewarded for the company’s performance.

During the last financial year, Maseko received a basic salary of R8.83 million, a performance bonus of R10.22 million, and fringe and other benefits of R16.40 million.

This means Maseko received a total pay package of R35.4 million, which equates to nearly R3 million per month.

Telkom’s new CFO, Dirk Reyneke also received an attractive pay package for his first four months at the company.

Reyneke was appointed on 7 December 2021 and received a total remuneration of R4.91 million by 31 March 2021.

Other top executives also received great salary packages.

Telkom consumer and small business CEO, Serame Taukobong was paid R13.25 million while BCX CEO Jonas Bogoshi received R10.45 million.

Other executives whose pay packages exceeded R10 million were chief human resources officer Melody Lekota and Openserve CEO Althon Beukes.

The table below provides an overview of Telkom’s top executives’ pay packages over the last year.

Telkom Executive Pay
Executive Position Remuneration Performance bonus Fringe benefits Total Monthly salary
Sipho Maseko Telkom CEO R8,830,449 R10,216,240 R16,397,068 R35,443,757 R2.95 million
Dirk Reyneke Telkom CFO R908,539 R4,000,000 R1,895 R4,910,434 R1.23 million
Serame Taukobong Telkom Consumer & Small Business CEO R6,300,000 R6,936,300 R12,292 R13,248,592 R1.10 million
Jonas Bogoshi BCX CEO R5,123,000 R5,322,797 R296 R10,446,093 R870,507
Melody Lekota Telkom chief human resources officer R3,766,273 R4,500,000 R1,960,732 R10,227,005 R852,250
Althon Beukes Openserve CEO R4,809,998 R5,130,000 R78,911 R10,018,909 R834,909
Lesiba Maloba Gyro CEO R4,000,000 R4,208,000 R12,292 R8,220,292 R685,024
Lunga Siyo Telkom Business CEO R4,000,000 R4,092,000 R12,292 R8,104,292 R675,357

Now read: Telkom’s fixed-line nightmare

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Telkom’s exclusive R10-million club