MTN under fire as senior management fills its pockets as share price falls
Telecommunications giant MTN Group is under fire from shareholders after nearly R249 million was paid to its executives and board members during 2024 – a year in which the company's share price fell by 21%.
At its most recent Annual General Meeting (AGM) in late May, 40.82% of shareholders voted against the company's remuneration implementation report, falling short of the 75% approval threshold required for the non-binding advisory resolution to pass.
The company's remuneration policy itself also faced scrutiny, with 24.34% voting against it.
The 2024 Remuneration Report shows: Group CEO Ralph Mupita earned R64.75 million
earned Group CFO Tsholofelo Molefe received R33.6 million
received MTN SA CEO Charles Molapisi took home R26.3 million
took home Senior VP Ebenezer Asante earned R37.8 million
In total, MTN's top executives were paid nearly R198 million.
Meanwhile, non-executive directors collectively received R51.4 million, with Chairman Mcebisi Jonas earning R7.37 million.
The generous compensation packages stood in sharp contrast to MTN's 2024 stock performance.
The share price declined from R117.00 on 1 January to R91.99 by year-end, prompting dissatisfaction among shareholders who saw their investments shrink.
This disconnect between executive remuneration and shareholder returns has been a long-standing point of contention.
Many investors argue that pay should be more closely tied to company performance and shareholder value creation.
Following the AGM, MTN issued a statement via the JSE's Stock Exchange News Service (SENS) acknowledging the shareholder dissent.
The company invited those who voted against the resolution to submit concerns in writing and attend a scheduled engagement session on 26 June 2025.
'We value the insights from our shareholders and remain committed to aligning executive pay with long-term strategic goals,' said Dr Khotso Mokhele, chair of MTN's Human Resources and Remuneration Committee.
Despite defending the remuneration structure as 'fair, competitive, and performance-driven,' MTN now faces mounting pressure to rethink its pay philosophy, especially in light of lackluster returns to shareholders.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
6 hours ago
- The Citizen
Africa top 200 report: South African brands take top 10 spots
The top 10 brands include network operators, banks and retail groups. The top 10 most valued brands in Africa are all South African, with Africa's largest mobile network operator, MTN, retaining first position. Brand Finance, responsible for compiling the report of the top 200 brands in Africa, commenced in 2020. Since its establishment, MTN, headquartered in Johannesburg, has consistently held the top spot. According to the report, the network operator has a brand value of $2.9 billion (more than R52 billion). Nigeria remains a substantial market for MTN, boasting a substantial subscriber base. ALSO READ: Can Pick n Pay's new look fix their troubles? New store design revealed Top 10 South African brands Jeremy Sampson, executive chair of Brand Finance Africa, said: 'The dominance of banking, telecoms and retail brands in the Africa 200 2025 ranking truly highlights that these companies are vital to the daily lives of African consumers and that these sectors are driving the continent's emerging economies. 'Their continued growth, despite fierce global competition, proves that African brands can stand shoulder to shoulder with the world's best, offering high-quality products and services that resonate across the continent and globally.' The top 10 brands include network operators, banks and retail groups. South African brand values Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. 'In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity and business performance,' reads the report. MTN – $2.9 billion (more than R52 billion) Vodacom – $2.5 billion (more than R45 billion) Standard Bank – $2.2 billion (more than R39 billion) FNB – $1.7 billion (more than R30 billion) Absa – $1.5 billion (more than R28 billion) Checkers – $1.4 billion (more than R25 billion) Woolworths SA – $1.3 billion (R23 billion) Nedbank – $1.2 billion (more than R21 billion) Investec – $1.2 billion (more than R21 billion) Shoprite – $1.2 billion (more than R21 billion) ALSO READ: Where do you shop for jeans? Survey reveals Mr Price is SA's most loved store Checkers earns outstanding domestic brand 'Brand Finance research reveals that Checkers earns outstanding domestic brand perceptions across several brand strength metrics, including likeability, consideration and recommendation. 'Data also shows that Checkers outperforms leading global counterparts when compared to their respective home markets, including Walmart in the US, Coles in Australia and Marks & Spencer in the UK,' reads the report. The report also includes other South African brands which are believed to be fast-growing. One of the brands is Capitec bank, which held the 28th position in 2024, but now sits at 14th. It has doubled its brand value to $1.1 billion (more than R19 billion). The report also included Clicks, Pick n Pay, Mr Price, Outsurance and Dis-Chem. NOW READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay
The South African
9 hours ago
- The South African
MTN under fire as senior management fills its pockets as share price falls
Telecommunications giant MTN Group is under fire from shareholders after nearly R249 million was paid to its executives and board members during 2024 – a year in which the company's share price fell by 21%. At its most recent Annual General Meeting (AGM) in late May, 40.82% of shareholders voted against the company's remuneration implementation report, falling short of the 75% approval threshold required for the non-binding advisory resolution to pass. The company's remuneration policy itself also faced scrutiny, with 24.34% voting against it. The 2024 Remuneration Report shows: Group CEO Ralph Mupita earned R64.75 million earned Group CFO Tsholofelo Molefe received R33.6 million received MTN SA CEO Charles Molapisi took home R26.3 million took home Senior VP Ebenezer Asante earned R37.8 million In total, MTN's top executives were paid nearly R198 million. Meanwhile, non-executive directors collectively received R51.4 million, with Chairman Mcebisi Jonas earning R7.37 million. The generous compensation packages stood in sharp contrast to MTN's 2024 stock performance. The share price declined from R117.00 on 1 January to R91.99 by year-end, prompting dissatisfaction among shareholders who saw their investments shrink. This disconnect between executive remuneration and shareholder returns has been a long-standing point of contention. Many investors argue that pay should be more closely tied to company performance and shareholder value creation. Following the AGM, MTN issued a statement via the JSE's Stock Exchange News Service (SENS) acknowledging the shareholder dissent. The company invited those who voted against the resolution to submit concerns in writing and attend a scheduled engagement session on 26 June 2025. 'We value the insights from our shareholders and remain committed to aligning executive pay with long-term strategic goals,' said Dr Khotso Mokhele, chair of MTN's Human Resources and Remuneration Committee. Despite defending the remuneration structure as 'fair, competitive, and performance-driven,' MTN now faces mounting pressure to rethink its pay philosophy, especially in light of lackluster returns to shareholders. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
3 days ago
- IOL News
MTN urged to rethink its Irancell Investment as Iran-Israel conflict grows
File picture: Siphiwe Sibeko While MTN insists its staff in Iran are safe, experts warn that in times of war, no business can guarantee protection or stability. As the deadly conflict between Iran and Israel enters its fifth day, pressure is mounting on South Africa's MTN Group to reconsider its major investment in Iranian mobile network operator MTN Irancell. While MTN insists its staff in Iran are safe, experts warn that in times of war, no business can guarantee protection or stability. MTN Irancell is Iran's largest mobile operator, providing millions of Iranians with 2G to 5G mobile services. MTN owns 49 percent of the company, with the rest held by its local partner, Kowsar Sign public message has so far been calm. 'As we understood from the Irancell management, all staff are safe at this stage,' said MTN chief sustainability and corporate affairs officer Nompilo Morafo. But with missiles flying and tension rising across the Middle East, some believe that MTN is not taking the situation seriously enough. Business analysts say war poses enormous risks to companies operating in conflict zones. From physical damage to infrastructure to the sudden breakdown of services, or even sanctions and trade restrictions, the dangers are wide-ranging. South Africa's Department of International Relations and Cooperation (Dirco) has also raised the alarm. It has asked South Africans living or working in Iran to register with the embassy in Tehran so they can be contacted if needed.
