MTN slammed for rewarding top executives while share price drops

Shareholders have slammed telecommunications giant MTN Group after the company paid nearly R249 million to its executives and board members in 2024, a year in which its share price dropped by 21%.

At the company’s most recent Annual General Meeting (AGM) in late May, 40.82% of shareholders rejected the remuneration implementation report, falling short of the 75% approval needed for the non-binding advisory resolution to pass.

Shareholders also scrutinised MTN’s overall remuneration policy, with 24.34% voting against it.

Top executive payouts

The 2024 Remuneration Report shows:

• Group CEO Ralph Mupita earned R64.75 million
• Group CFO Tsholofelo Molefe received R33.6 million
• MTN SA CEO Charles Molapisi took home R26.3 million
• Senior VP Ebenezer Asante earned R37.8 million

In total, MTN’s top executives were paid nearly R198 million.

Meanwhile, non-executive directors collectively received R51.4 million, with Chairman Mcebisi Jonas earning R7.37 million.

Poor shareholder returns

MTN’s generous executive compensation in 2024 sharply contrasted with its poor stock performance.

The share price dropped from R117.00 on 1 January to R91.99 by year-end, frustrating shareholders who watched their investments lose value.

This gap between executive pay and shareholder returns has long fueled criticism.

Many investors insist the company should link compensation more directly to performance and value creation for shareholders.

MTN responds to dissent

Following the AGM, MTN issued a statement via the JSE’s Stock Exchange News Service (SENS) acknowledging the shareholder dissent.

The company invited those who voted against the resolution to submit concerns in writing and attend a scheduled engagement session on 26 June 2025.

“We value the insights from our shareholders and remain committed to aligning executive pay with long-term strategic goals,” said Dr Khotso Mokhele, chair of MTN’s Human Resources and Remuneration Committee.

Despite defending the remuneration structure as “fair, competitive, and performance-driven,” MTN now faces mounting pressure to rethink its pay philosophy, especially in light of lackluster returns to shareholders.