Former MTN CEO in R24m golden handshake
Mobile network MTN paid its former group CEO Sifiso Dabengwa R23.7-million for “loss of office” amid the company facing a multibillion-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 $5.2-billion 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 $3.9-billion 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 (R9.29-billion), which had a 402 cents negative impact on HEPS”.
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