By Gugu Lourie
Is Phuthuma Nhleko, the executive chairman of MTN Group, worth R68.2 million in total remuneration for 2016 financial year?
This is a question that will be on the lips of South Africans as they realise that Nhleko was paid R30 million in salaries for 2016 financial year with a R32.2 million bonus, pushing his total remuneration as executive chairman of MTN to more than R68 million.
Mind you this figure exclude his fees as a chairman of the mobile phone giant. Nhleko was paid R2.6 million retainer as a chairman, R638 000 for attending meetings, R351 000 for attending special board meetings, R420 000 for a strategy session, pushing his total remuneration as a chairman to R3.9 million.
The combined remuneration pushes Nhleko’s total remuneration at MTN to more than R72 million.
Did the remuneration committee make a good call?
That said, his supporters may contend that Nhleko did a sterling job to stabilise the business and reduce a multi-billion Nigerian fine imposed on the mobile phone operator for failure to register customers.
His supporters may argue that he saved the mobile phone giant billions and has managed in short space of time to assemble a ‘great team’ to take the company forward.
But will shareholders approve this remuneration on 19 May 2017, when the company hold its annual general meeting?
We must wait and see, what investors think about this remuneration.
Will they argue this is excessively generous or not?