Fin24 reports that some Telkom shareholders questioned the R20-million retention bonus paid to the company's former CEO Sipho Maseko, citing a "lack of rationale for such a large sum".
The bonus was paid in two batches. The company's annual report states that Maseko, who resigned last year and ceased his CEO responsibilities at the end of December, was paid R10 million in the 2021 financial year and another R10 million in the 2022 financial year. He remained with the company until June 2022, providing support to his successor, Serame Taukobong, and also acting as an advisor to the board. Maseko had been Telkom CEO for eight years. The report said while the shareholders acknowledged the reasons behind Maseko's retention, they were "concerned about the total value of the award". It went on to indicate: "Shareholders were also concerned about the lack of rationale for such a large sum being paid to the GCEO. In addition, they were concerned that Telkom did not deliver the retention payment as equity and is additional to other variable pay he is eligible to receive." The board explained that it considered it "strategically important" to retain Maseko's services for a minimum period of two years. It indicated that the decision at the time was supported and approved based on the timing of the company's value unlock strategy, including the significant shifts taking place in the telecommunications space. "He had an immeasurable impact and placed Telkom on a firm footing," the board claimed. Telkom's value unlock strategy was birthed under Maseko's leadership.
- Read the full original of the report in the above regard by Sibongile Khumalo at Fin24 (subscriber access only)
- Read too, Telkom pays departed CEO R10m ‘retention bonus’, in the year he resigns, at Moneyweb
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