MTN paid its group CEO Ralph Mupita R84.2 million in the 2021 financial year as the company recorded an improved financial performance, statements in the company’s annual report show.
The amount is a 133% increase from the R36.1 million total remuneration recorded in 2020.
Mupita, the company’s former chief financial officer, took over as CEO in September 2020 after the departure of his predecessor, Rob Shuter. He has been steering the company’s Ambition 2025 strategy, which focuses on streamlining its assets and positioning the firm as a Pan-African telecommunications company.
His total remuneration package included R15.4 million in salary, post-employment benefits of R701 000, short-term incentives of R29 million, long-term incentives amounting to R38 million, and qualifying dividends, among other benefits. The short-term incentive of R28.9 million was a significant jump from the R17.7 million seen in 2020.
“The difference of remuneration received in 2021 compared to 2020 was attributed to improved performance outcomes between the two years and his promotion to group president and CEO effective from 1 September 2020,” the company said.
The company also stated that the increase in long-term incentives reflected between the 2020 and 2021 financial year was due to improved performance conditions outcomes and the group share price performance between the two periods.
Mupita has overseen the company’s asset realisation programme, which included the sale of non-strategic interests. The programme, which launched in 2019, has so far delivered over R15 billion of the targeted R25 billion. As part of the disposal, MTN in February completed the sale of its 20% shareholding in BICS, formerly Belgacom International Carrier Services, to Proximus Group for R1.8 billion.
In October, IHS Towers, a firm in which MTN has a shareholding, started trading on the New York Stock Exchange, and the company said it will look to sell its 26% interest when market conditions are conducive.
The report noted that Mupita continued to oversee the company’s “impressive run of 15 successive quarters of operating improvements and exceeded most of the group’s medium-term targets”.
“The company has seen an acceleration in growth and momentum in the platform business and our strategy around structurally separating our Fintech business.”
While the business has seen growth, its market presence shrunk from 21 countries to 19 following its exit from Syria and Yemen. The firm is also looking to dump conflict-torn Afghanistan, a move which would reduce the number of its markets to 18.
MTN’s market capitalisation at the end of 2021 was R321.7 billion (US$20 billion).-fin24
