Vodacom, SA's largest cellular company, paid its CEO Pieter Uys R13.19 million in the year to March, which included R6.445 million in short-term incentive bonuses.
According to the mobile operator's latest annual report, Uys' guaranteed package in the 2011 financial year was R6.86 million, an 8.5% increase on the previous year.
In total, Uys earned R13.19 million compared with R10.7 million last year; a 23% increase on his 2010 earnings. The amount includes benefits such as his mobile phone, subsistence allowances and employee gifts, according to the report.
Vodacom's annual report says the guaranteed package is based on staff's roles, individual performance and the group's performance. Incentives are based on a “review of market data”, business affordability and “consideration of their individual performance and potential,” says Vodacom's annual report.
In the year to March, Vodacom grew group revenue to R61 billion, from R58.5 billion the previous year, while net profit leapt to R8 billion, from R4.2 billion.
Former Vodacom SA MD Shameel Joosub, who left Vodacom SA to head up Vodafone Spain's operations, at the end of March, earned R5.8 million in his guaranteed package, an 18.5% increase.
Vodacom explains Joosub received an 8.5% increase, in line with other directors, but then earned a further 9.1% increase after being appointed as CEO of Vodafone Spain, an amount Vodacom says will be recovered from the Vodafone subsidiary.
According to the report, Uys earned a short-term incentive of R6.4 million, a 55.2% increase on the previous year. Joosub's incentive was R7.2 million, a 51.8% gain, while Shuter earned R5.4 million, a 108.5% increase.
Vodacom says in the report that the short-term incentives are discretionary and based on individual and group financial performance.
Uys was also awarded 138 822 shares as part of the company's share scheme, while Joosub was awarded 101 508 shares, and Shuter 107 570 shares.
Shuter earned R10.2 million, slightly lower than the R14 million he earned in 2010. During the previous financial year, he earned an R8.4 million incentive bonus, which was part of a signing deal in 2009 linked to him staying with the company for two years.
Joosub earned R9.6 million as Vodacom SA MD and R4 million as CEO of Vodafone Spain, which Vodacom will recover from the Vodafone subsidiary.
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