Share

Former MTN CEO in R24m golden handshake

Johannesburg - Mobile network MTN  [JSE:MTN] paid its former group chief executive officer Sifiso Dabengwa R23.7m for “loss of office” amid the company facing a multi-billion dollar fine.

This detail has been revealed in MTN’s 2015 Integrated Business Report which says the “loss of office comprises notice pay and a restraint of trade”.

Dabengwa quit MTN on November 11 last year after joining the company in October 2001.

His resignation came amid the Nigerian Communications Commission (NCC) fining MTN Nigeria $5.2bn for failing to disconnect 5.2 million unregistered subscribers.

The fine resulted in MTN’s share price at the time losing almost a fifth of its value. Dabengwa’s resignation was also shortly followed by MTN Nigeria CEO Michael Ikpoki stepping down in December.

Nigerian regulators then reduced the fine to $3.9bn but lawmakers in the country have threatened to hike the penalty again.

Amid the fine and Dabengwa’s exit, MTN’s executive chairman for the group, Phuthuma Nhleko has been heading up the company on an interim basis.

“My primary tasks were to resolve the Nigerian fine and appoint a new group CEO,” Nhleko wrote in the 2015 integrated report.

“The latter process is well under way and we expect to identify and name a new group CEO by the end of June 2016,” said Nhleko.

Fine's negative impact

MTN, in the meantime, has been reeling from the fine in Nigeria.

The company in March reported that its basic headline earnings per share for its full financial year declined by 51.4% to 746 cents.  

The company said this drop was “largely a result of the Nigerian regulatory fine provision (R9.29bn), which had a 402 cents negative impact on HEPS”.

What do you make of MTN paying its former CEO R24m for loss of office? Tell us by clicking here.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.3%
Rand - Pound
24.15
-0.1%
Rand - Euro
20.64
-0.3%
Rand - Aus dollar
12.38
+0.4%
Rand - Yen
0.13
+0.4%
Platinum
905.16
-2.0%
Palladium
1,006.63
+0.1%
Gold
2,154.73
-0.3%
Silver
24.92
-0.5%
Brent Crude
86.89
+1.8%
Top 40
65,996
-0.4%
All Share
72,197
-0.3%
Resource 10
53,320
0.0%
Industrial 25
99,852
-0.6%
Financial 15
16,590
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders