Ten MTN directors are set up to be millionaires with shares worth R55.6 million (US$6.5 million), as granted according to the operator’s 2010 performance plan.
The board members have been rewarded in order to “to retain and recognise the contributions of eligible employees by providing additional incentive to contribute to MTN Group’s continued growth in accordance with the applicable incentive plan rules,” the company’s annual report states.
Beneficiaries include the Chief Executive and President Sifiso Dabengwa and the South African MTN Managing Director Karel Pienaar. Dabengwa has received 94,600 shares to the value of R16.8 million (US$1.9 million), while Pienaar’s bounty is worth an estimated R5.8 million.
The Johannesburg Stock Exchange (JSE) report states these shares have been vested during December 2012 as an outcome of the high revenue increase of 17.5 percent or R66.4 billion (US$ 7.8 billion) for MTN last year.
This leap in numbers is credited to the growth in South Africa, Iran and Ghana. Nigeria was expected to perform better, however the competition was reported to be “intense” and the company claims it has repeatedly been the victom of infrastructure sabotage.
The other executives benefitting from this settlement include Group Chief Financial Officer Nazir Patel with 48,500 shares at R8.6 million (US$0.99 million) and secretary Bongi Mtshali with 6,400 shares valued at R1.1 million.
Paul Norman, MTN Group’s Chief of Human Resources and Corporate Affairs Officer has received R5.45 million (US$ 0.63 million) in shares, while the company secretary Lucy Mokoka’s earnings will make it to the million mark if the shares hold their market value according to the network provider’s goals.
Lastly, South Africa’s Chief Financial Officer Zunaid Bulbulia will be R2.76 million (US$319,000) richer if all goes accordingly.
Further share awards will be determined by the company’s performance targets as is yet undisclosed at present.
MTN’s 9.5 percent growth of the local, South African unit makes it the third largest business, with Nigeria and Iran just above it. The R19.9 billion (US$ 2.3 billion) growth within six months, was boosted by the 50 percent rise in data usage.