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MTN boss bags R33m booty

Jul 15 2010 17:07 Cecile Nel & Simon Dingle

Company Data

Mtn Group Ltd [JSE : MTN]

Last traded R133.15
Change R0.85
% Change 0.64%
Cumulative volume 3.39m
Market cap R250.98bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

Vodacom Group Limited [JSE : VOD]

Last traded R103.50
Change R-0.40
% Change -0.38%
Cumulative volume 970,284
Market cap R154.00bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - MTN Group [JSE:MTN] shareholders approved a R33m windfall for outgoing boss Phuthuma Nhleko on Thursday.

The settlement, which will be due in a once-off sum, is payable on April 1 2011 and is in respect of a three-year restraint of trade.

This dwarfs the R7m paid per year for two years to Alan Knott-Craig when he exited Vodacom Group [JSE:VOD] in 2008.

Nhleko, whose contract expired on June 30, agreed to stay on in his role until March 2011. A market source viewed the payment at "reasonable", given Nhleko's extensive contact base, particularly in Africa, and compared to local and international restraint payment standards.

At an annual general meeting on Thursday afternoon, 72% of shareholders gave the go-ahead for the pay-out.

Nhleko will also be entitled to own up to 5% of MTN’s shares in addition to the R33m in restraint of trade payments.

Vestact analyst Sasha Neryshkine reckoned the payment was justified.

"He knows a lot. He's very smart, an investment banker formerly," Neryshkine said. "There's always something on the go at MTN. And imagine what he could tell Bharti Airtel should it want to employ him."

Commenting on comparisons with the golden handshake meted out to Knott-Craig, Neryshkine said: "In South Africans' minds, Vodacom has this place, but MTN is a much bigger company, with far, far broader reach. Given this is a three-year restraint, I think it's totally reasonable."

Earlier on Thursday, MTN unveiled the details of an R8.1bn black economic empowerment transaction.

 - Fin24.com

 
 
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