Former MTN CEO Sifiso Dabengwa was given a R23,7m golden handshake after resigning from the telecommunications group last year.
Dabengwa resigned from the company on 9 November 2015, just months after the Nigerian Communications Commission imposed a record-setting fine of US$5,2bn on MTN Nigeria for failing to disconnect more than 5m unregistered Sim cards. The fine was later reduced to a still-eye-watering $3,9bn.
MTN’s former group CEO, Phuthuma Nhleko, took the reins on an interim basis for six months following Dabengwa’s departure.
Nhleko’s contract expires next month, though MTN hasn’t yet said whether it will be extended.
In the group’s 2015 annual report, released on Monday, MTN revealed that it had paid Dabengwa R40,6m in the 12-month period to 31 December 2015. This was made up of R23,7m for “compensation for loss of office”, along with a salary of R8,4m, post-employment benefits of R1,1m, other benefits of R2,9m and share gains of R4,5m.
MTN also revealed details of its temporary employment contract with Nhleko. To enlist his services as interim executive chairman, it entered into a contract with a service provider called Captrust Investments.
MTN revealed that it has paid fees to Captrust Investments in the 2015 financial year of R5m. His contract states that the board may, at its discretion, pay him a bonus at the end of the contract.
In addition to this fixed term contract as an executive, Nhleko continued to serve as chairman of the group board of directors, and as such received all related director remuneration in this regard. He was paid R3,5m for these duties. — (c) 2016 NewsCentral Media