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MTN gives new SA CEO R8m in shares

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 10 Mar 2017
Godfrey Motsa will take over as MTN SA CEO on 13 March.
Godfrey Motsa will take over as MTN SA CEO on 13 March.

MTN has awarded incoming MTN South Africa CEO Godfrey Motsa almost R8 million in shares. The shares are part of MTN's performance share plan and will only vest in June 2019.

MTN SA this week announced that current CEO Mteto Nyati would leave the group and be replaced on 13 March by Motsa, who is currently VP of the South and East Africa (SEA) region at the MTN group. Nyati is taking up the role of Altron CEO sometime before 1 July.

Motsa's 66 500 MTN shares, which are subject to performance conditions, were bought on 9 March for a market price of R120.22, totalling R7 994 630 and vesting on 28 June 2019.

Motsa joined MTN from rival Vodacom in July 2016 but his appointment caused some controversy as it broke a restraint of trade agreement with Vodacom. He resigned from Vodacom in December 2015, after 10 years with the telco, with plans to move to MTN. He had served in the roles of CEO of Vodacom Lesotho, CEO of Vodacom Democratic Republic of the Congo and chief officer consumer business unit at Vodacom SA.

The Johannesburg Labour Court, however, ruled in February 2016 that Motsa was bound by his Vodacom contract of employment to serve a six-month notice period - which would expire on 30 June 2016 - as well as an additional six-month restraint of trade agreement which would only expire on 31 December 2016. This precluded him "from taking up employment with any company that engages in similar business activities as Vodacom during that time".

In June 2016, MTN got around the restraint by appointing Motsa to a role that covered countries in the SEA region - Uganda, Rwanda, Zambia, South Sudan and joint ventures in Botswana and Swaziland - but excluded SA, so there was no overlap in countries where Vodacom operates.

When Motsa left Vodacom, he forfeited R6.75 million worth of Vodacom shares awarded to him in November 2015 as part of incentive remunerations. According to the conditions of the forfeitable shares, they were supposed to be vested for three years and were subject to the achievement of performance targets during that time.

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