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Vodacom CEO receives R18m in shares

Paula Gilbert
By Paula Gilbert
Johannesburg, 23 Jun 2016
A total of over R36.8 million worth of forfeitable shares was issued to CEO Shameel Joosub and eight other executives and board members.
A total of over R36.8 million worth of forfeitable shares was issued to CEO Shameel Joosub and eight other executives and board members.

Vodacom CEO Shameel Joosub has received company shares worth almost R18 million as part of long-term incentives given to a number of top executives at the telco.

A total of over R36.8 million worth of forfeitable shares was issued to Joosub and eight other employees or board members. The details were outlined in a SENS announcement this morning, and showed the shares were acquired on market for a value of R166.51 each and awarded to the Vodacom execs and two company secretaries on 13 June.

Vodacom previously told ITWeb the allocation of forfeitable shares is a contractual condition linked to long-term incentives for executives. The realisation of the shares is subject to the achievement of performance targets, which include contributions to Vodacom's strategic, operating and financial performance.

The stock options are vested for three years, and during that time, the employees or directors 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 108 099 shares are 100% subject to performance conditions and are worth R17.99 million. His stock remuneration is in addition to the R21.8 million remuneration package he received in the past financial year. The package, which included a salary of R7.8 million and short-term incentives worth almost R14 million, was double his total package the previous year. Last December, Joosub was also allocated 13 381 forfeitable shares worth over R2 million.

According to the latest allocations of the telecoms operator's forfeitable share plan, CTO Andries Delport has been given shares worth R3.6 million while Vuyani Jarana, chief officer of the enterprise business unit, was allocated R3.8 million in shares. Over 66% of the shares are subject to performance conditions.

Yolanda Cuba resigned as chief officer of strategy and new business at the end of April but stays on as a non-executive director, entitling her to almost R4.2 million worth of shares. Her replacement, Nadya Bhettay has been allocated R1.75 million worth of shares.

Chief HR officer Matimba Mbungela received shares worth R2.3 million, and R1.8 million worth of shares were allocated to Vodacom South Africa's finance director, Belinda Williams.

Group company secretary Sandi Linford received shares worth R970 000, and Vodacom SA company secretary Avinash Dhanasir was allocated shares worth almost R400 000.

This morning, the Vodacom share price was at around R166.37 a share and the company's market capitalisation was worth around R247.5 billion.

Bonus breakdown:

Shameel Joosub (CEO) 108 099 shares worth R17 999 921.22

Yolanda Cuba (non-executive director) 25 223 shares worth R4 199 964.97

Vuyani Jarana (chief officer: enterprise business unit) 22 701 shares worth R3 780 018.42

Andries Delport (CTO) 21 692 shares worth R3 612 006.50

Matimba Mbungela (chief officer: human resources) 13 873 shares worth R2 310 039.01

Belinda Williams (executive director: finance SA) 10 810 shares worth R1 800 008.77

Nadya Bhettay (chief officer: strategy and business development) 10 509 shares worth R1 749 888.27

Sandi Linford (group company secretary) 5 827 shares worth R970 272.99

Avinash Dhanasir (VSA company secretary) 2 402 shares worth R399 964.95