14 hours ago
- Business
- 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.
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