Vodacom's head honchos stand to earn millions of rands worth of shares, depending on how the company performs over the next three years.
According to a statement issued to shareholders, CEO Shameel Joosub will be 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' time.
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; company secretary Sandi Linford, who was awarded 4 580; and CTO Andries 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.
Joosub is entitled to an additional award of Vodafone performance shares with an on-target value of 50% of his guaranteed package, provided he invests in Vodafone shares to the value of half of that package.
"His investment in both Vodacom and Vodafone shares must be on an ever-increasing basis to qualify for the additional awards."
The share scheme is part of Vodacom's retention plan.
Its stock lost 4.36% - or R5.90 - to close at R129.50 yesterday.
In the year to March, revenue surpassed the R75 billion mark for the first time, as data continued to be increasingly used. The operator reported data users up 21% to around 41% of its customer base.
Service revenue - the income Vodacom earns from network services - gained 3.7% when exchange fluctuations are stripped out. The bulk of this growth was from its international operations, which now account for 15.6% of group earnings before interest, tax, depreciation and amortisation.
Data revenue gained 32.7% - to 24.1% of service revenue - as traffic grew 94%.
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