MTN has explained that some of its executives receive a portion of their pay from a Dubai-based entity in US dollars if they have significant responsibilities outside their primary country.<\/p>\n
Asked why these amounts are paid out of Dubai, a spokesperson told MyBroadband that this was because it was the easiest option for the MTN Board.<\/p>\n
Several MTN executives receive their salaries according to a split remuneration scheme.<\/p>\n
This includes group chief executive Ralph Mupita, financial officer Tsholofelo Molefe, and chief operating officer Jens Schulte-Bockum.<\/p>\n
Two more executives started receiving some of their pay in dollars in the 2023 financial year \u2014 MTN Nigeria CEO Karl Toriola, and senior VP for markets Ebenezer Asante.<\/p>\n
The larger portion of their salaries is usually paid in local currency by a domestic legal entity, with the remainder paid in dollars by an entity in Dubai.<\/p>\n
MTN\u2019s integrated report for its 2023 financial year states that this is due to the pan-African nature of its business and the importance of having a competitive remuneration structure at senior levels.<\/p>\n
\u201cSelect prescribed officers who have significant responsibilities outside their primary country of employment or whose income and expenses are incurred in multiple currencies\u201d receive these dual employment contracts, MTN said.<\/p>\n
\u201cOur peer comparator analysis conducted in [the 2022 financial year] indicated that this remuneration principle is common among a number of companies with diverse geographic footprints.\u201d<\/p>\n
The dual contracts are subject to board approval.<\/p>\n
MTN\u2019s integrated annual report showed that Group CEO Ralph Mupita\u2019s package included earnings of $913,000 in 2023.<\/p>\n
Converted to rand using the exchange rates stipulated in the report, this comes to R16.637 million.<\/p>\n
This is more than a fifth (20.7%) of his R80.4-million single-figure remuneration for 2023, including dividends and vested performance share plan shares.<\/p>\n
An MTN spokesperson explained that this represents the proportion of Mupita\u2019s responsibilities outside South Africa.<\/p>\n
MTN\u2019s presence in Dubai traces back to its 2006 acquisition of Investcom<\/strong><\/a> in a $5.5 billion deal (around R38.5 billion at the time).<\/p>\n Although headquartered in Beirut, Lebanon, Investcom was listed on the Dubai and London stock exchanges.<\/p>\n Through the acquisition, MTN gained operations in Ghana, Syria, Yemen, Sudan, Cyprus, Benin, Guinea Bissau, Guinea, Liberia, and Afghanistan.<\/p>\n It has since exited Yemen<\/a><\/strong> and sold the Cyprus business<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":" MTN has explained why its Group CEO has a portion of his salary paid by an entity registered in Dubai.<\/p>\n","protected":false},"author":15,"featured_media":504630,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[41906,3],"tags":[35,42,39564],"class_list":["post-534695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-telecoms","category-telecoms","tag-headline","tag-mtn","tag-ralph-mupita"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/534695"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=534695"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/534695\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/504630"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=534695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=534695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=534695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}