earningsBL Premium reports that executives at technology group Blue Label Telecoms took a large pay cut in the last financial year after failing to meet a number of targets.  

Blue Label’s recent performance has been hampered by its investment in Cell C, in which it holds a 45% stake.  In its latest annual report, Blue Label said the board and management were “extremely disappointed in the performance of Cell C and, as at 31 May 2019, our entire investment into Cell C and our exposure in the SPV1 and 2 structures, was written down to zero”.  Its remuneration report shows that compensation for the company’s top executives comprised a number of factors, most notably short-term and long-term incentives, and performance bonuses.  The total remuneration of co-CEOs Brett and Mark Levy, who each received R23.9m in 2018, declined 40%.  They were paid R14.3m each in 2019 with a base salary of about R9m.  In terms of short-term incentives, the company indicated that it had not achieved predetermined targets for growth.  “As a result thereof, as well as the executive directors electing to forfeit bonuses for the nonfinancial targets, no short-term incentive bonuses were paid to them,” the company stated.  No short-term bonuses were given in 2018 but in 2017 the Levy brothers received as much as R7.8m in such incentives.

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