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R10.5m in bonuses for Vodacom chiefs

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 07 Dec 2015
CEO Shameel Joosub has received shares worth R2 million, while consumer business unit chief Godfrey Motsa's allocation is worth over R6.7 million.
CEO Shameel Joosub has received shares worth R2 million, while consumer business unit chief Godfrey Motsa's allocation is worth over R6.7 million.

Vodacom's top executives have been awarded incentive remunerations in the form of company stock worth over a total of R10.5 million.

The telco made the allocation of forfeitable shares public via a SENS announcement, which confirmed CEO Shameel Joosub was issued 13 381 Vodacom shares worth over R2 million. His shares are 100% subject to performance conditions.

The shares were acquired on market for a value of R149.5 each and awarded to six top execs on 26 November.

"Our executives are rewarded for, among other things, their contribution to our strategic, operating and financial performance of the business," Vodacom executive head of corporate affairs, Tshepo Ramodibe, told ITWeb.

"The allocation of the forfeitable shares is a contractual condition linked to long-term incentives for our executives. The realisation of the shares is subject to the achievement of performance targets such as net promoter score, increase in customers and revenue," adds Ramodibe.

The stock options are vested for three years, and during that time, the executives need to hit predetermined performance targets to qualify to cash out the shares. If the employee leaves the company before the vested period is up, "a calculation would be made up to the time of departure and the balance would be forfeited".

Joosub's stock remuneration is in addition to his R7.3 million package for 2015, which represents a 5% increase on the R6.95 million he earned last year.

Interestingly, the CEO did not receive the most amount of shares. Chief officer of Vodacom's consumer business unit, Godfrey Motsa, received a whopping 45 199 shares worth over R6.7 million. Of those shares, only 3 625, the equivalent of just 8%, are subject to performance conditions. Motsa has been with Vodacom since 2005 and has held various senior roles. He took over his current position from Phil Patel in February this year.

Vodacom says its board remunerations committee reviews the total pay mix of executives every year and "decides on the proportion of total remuneration paid as part of the guaranteed package, or as short- and long-term incentives".

The other four execs listed all had 67% of their share allocations dependent on their performance for the next three years. Their share allocations are worth between R217 326 and R644 655.

Bonus breakdown

Godfrey Motsa (Chief officer: Consumer Business Unit) 45 199 shares worth R6 755 808.65
Shameel Joosub (CEO) 13 381 shares worth R2 000 032.65
Andries Delport (CTO) 4 313 shares worth R644 655.91
Vuyani Jarana (Chief officer: Enterprise Business Unit) 4 012 shares worth R599 666.01
Yolanda Cuba (Chief officer: Strategy and New Business) 2 306 shares worth R344 673.44
Maya Makanjee (Chief officer: Corporate Affairs) 1 454 shares worth R217 326.62

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