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Vodacom execs cash in

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 19 Aug 2014
Vodacom CTO Andries Delport has sold R1.28 million in awarded stock.
Vodacom CTO Andries Delport has sold R1.28 million in awarded stock.

Vodacom CTO Andries Delport has become the latest executive to benefit from the company's retention scheme. He earned more than R1 million after he unloaded shares he earned when performance targets were met.

During the course of this year, several Vodacom executives have chosen not to hold onto their stock, but to unload it for a combined value of R5.66 million, while CEO Shameel Joosub unloaded thousands of ordinary shares in January, to gain R6 million.

Delport sold 10 146 forfeitable shares at R126.50, to gain R1.28 million. The stock was awarded under the company's share plan, which provides executives with securities if certain targets are met.

Vodacom last traded at R126, giving the company a listed value of R187.5 billion.

Performance benefits

Vodacom's incentive scheme forms part of its remuneration policy, which "aims to attract and retain leaders of the highest calibre, while making sure that our executives are compensated according to their performance," its annual report notes. Performance is measured on financial and strategic delivery, as well as by how well the directors apply its business principles.

Earlier this month, two top managers also sold their awarded stock, for a total gain of just more than R3 million. Vuyani Jarana, chief officer of Vodacom's Enterprise Business unit, sold 21 095 shares at R125 to earn R2.6 million, while the group's chief human resources officer, Matimba Mbungela, sold 3 548 shares at the same price to reap R444 567.

Joosub has also benefitted from the retention scheme, and was awarded 53 088 shares worth R6.95 million on 3 July after he spent R3.5 million to buy 26 864 shares. The stock, which only vests in three years, was awarded in terms of Vodacom's co-investment deal, which allows Joosub to be awarded more shares based on how much he invests through the market.

Company secretary Sandi Linford has also reaped the rewards of selling forfeitable shares once they vest, gaining almost R1 million in June after unloading 7 119 shares earlier this year. Likewise, Vodacom SA company secretary Avinash Dhanasir benefitted to the tune of R379 133 after selling 2 925 shares.

More to come

Linford was, just prior to that sale, awarded 4 580 shares worth R600 070, which will vest in three years should certain performance targets be met. Dhanasir, on the same day, was awarded an additional 2 167 shares, worth R283 919.

That share grant, which happened towards the end of last month, also saw Joosub awarded 95 482 shares, worth R131 each, in three years, depending on company performance. As a result, Joosub could earn an additional R12.5 million in three years.

This is on top of his guaranteed package of almost R7 million in the year to March 2014, as well as his incentive bonus of just more than R6 million. However, to qualify for the shares, Joosub has to meet unspecified targets in terms of performance.

Among the other executives that were awarded shares are CFO Ivan Dittrich, who was awarded 14 807 shares; and Delport, who was granted R1.6 million-worth of shares.

According to Vodacom's annual report, Joosub is entitled to an additional award of Vodacom performance shares with an on-target value of 50% of his guaranteed package, provided he invests in Vodacom shares to the value of 50% of that package.

Jarana and Dittrich have also invested in the company, together spending R1.8 million in May to buy 11 000 Vodacom shares, the bulk of which were bought by Jarana, while Joosub sold 45 946 shares in January, for R6 million.

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