MTN tops pay stakes

By Kimberly Guest for Mabili
Johannesburg, 09 Nov 2007

The IT industry continues to be SA`s lowest paying sector from an executive point of view. However, non-executive director remuneration is often as - or more - favourable than other sectors.

That`s according to Mabili`s fourth annual Directors` Remuneration Report.

While the growth rate in executive pay appears to have slowed in the periods under review, Laurence Grubb, MD of Mabili Reward, notes that payment terms for empowerment executives is receiving upward pressure.

"Transformation remains a key issue in the debate surrounding executive pay. There has been significant pressure on boards to drive transformation at executive level in the last year. [This] may drive executive pay up - as a shortage of skills remains prevalent. However, it is encouraging to see that many organisations now have well directed affirmative action and talent management programmes," he says.

The report includes JSE-listed companies and draws data from annual reports.

It provides company-specific insight into the basic remuneration, benefits, bonuses, other remuneration and share options paid to executives. It includes a brief outline of each business, as well as a snapshot of its financial position.

Montanana leads

The report reveals that MTN group president and CEO Phutuma Nhleko no longer receives the highest basic remuneration in the ICT sector. Instead, Datatec CEO Jens Montanana tops the industry, with an annual salary of $874 thousand (R5.7 million).

Only one of the top basic package earners - Robert Venter - features in the list of highest total remunerations.

Additionally, MTN`s group CFO Rob Nisbett, and group COO Sifiso Dabengwa exceeded Nhleko`s earnings. The executives topped both the cellular giant`s and ICT industry`s total remuneration chart; driven mostly by the exercising of share options.

MTN also dominates in its remuneration of non-executive directors. Although GijimaAst`s Cheslyn Mostert leads the list, this was due to a R1 million payment for the delivery of professional services.

The full report is available from Mabili.

* These executives are paid in dollars. For comparative purposes ITWeb converted the figures to rands at an exchange rate of $1/R6.50.