MTN Group has published its financial results for the year ended December 2020, apart from the strong service revenue and subscriber growth across all its operations the report also revealed how much its top executives were paid which also included former MTN CEO, Rob Shuter.
Former MTN Chief Executive Officer (CEO) Rob Shuter, who resigned from the position in August 2020, was paid R73.8 million for the year, including a base salary of R18.15 million, and a bonus of R30.1 million.
His salary also included a R17.8 million payment under ‘other benefits’. This category usually includes medical aid, expense allowances and contributions to the unemployment insurance fund, but for Shuter this also included a payment of cash-settled share-based incentives.
When Shuter was appointed in 2017, he was granted a cash-settled share-based payment incentive in lieu of unvested stocks or equity relinquished upon resignation from previous employment, MTN said.
The value of the incentive was determined based on the market value of 327,214 ordinary listed shares in MTN Group Limited. Rob was succeeded by his CFO, Ralph Mupita, who took up the position of CEO on 1 September 2020. Mupita also scored a sizeable paycheque of R30.8 million for the year, including a base salary of R12 million, and a bonus of R17.7 million.
Financial performance
MTN on Wednesday (10 March) reported strong service revenue growth up 19.9% for the year ended December 2020, while subscribers increased by 28.8 million across all operations to 279.6 million.
The mobile operator reported growth of 14.6% in MTN Nigeria, but only 1.6% in MTN SA, while MTN Ghana soared 16.6%. Reported headline earnings per share increased by 60% to 749 cents, while the group suspended the final dividend for 2020.
In the near-term, MTN said it is focused on de-leveraging the holding company and it reduced net debt by R12 billion, to R43 billion.
- Group service revenue grew by 19.9%
- EBITDA (before once-off items) grew by 21.9%
- Reported HEPS at 749 cents per share, up 60%
- Group net debt-to-EBITDA ratio decreased to 0.8x (from 1.2x)
- Return on equity (ROE) improved to 17%
- Capex of R33 billion
