SA's largest cellular company has granted recently-appointed SA MD Sipho Maseko forfeitable shares worth R6.7 million, which he will receive in three years if he hits certain targets.
The shares form part of the company's long-term incentive plan, which aims “to retain key skills and motivate executives over the long-term, which is essential to sustainable performance”, explains the company's latest annual report.
Maseko was awarded 74 124 Vodacom shares, at an average price of R90.37, which he will benefit from in three years if he meets certain targets. The company's stock closed yesterday at R89.93.
Maseko took over at the helm of Vodacom SA in September after Shameel Joosub left the company to head up Vodafone Spain at the end of March. Maseko had been CEO of BP Southern Africa since 2008, and has also held other executive positions.
Vodacom introduced the share plan in 2009. For executive directors, a proportion of the shares are linked to performance conditions, which include operating profit and South African market share in terms of revenue. If targets are not met, the shares are forfeited.
In June, CEO Pieter Uys was awarded 111 304 shares in the company, worth a total of R9.5 million, while CFO Rob Shuter was been awarded 63 352 shares, worth R5.4 million. He received 63 352 shares, of which the bulk, at 42 690, is also subject to performance conditions.
Vodacom SA is the biggest network in the country, with 28.9 million subscribers, giving it the lion's share of the market, with about 50% of all subscribers. It is also the group's largest unit, accounting for the bulk of revenue.
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