Luring former MTN South Africa CEO Mteto Nyati to take over as CEO of Altron from Robbie Venter didn’t come cheap. Nyati was paid a R6.5-million sign-on bonus, the JSE-listed technology group’s annual report, published on Tuesday, shows.
In the group’s remuneration report, it said it is “not in the practice” of paying sign-on bonuses. However, Nyati was offered R6.5-million “as part of the restructuring of the group with industry-specialised skills” at executive management level. Nyati joined Altron as CEO on 1 April 2017, one month into the group’s 2018 financial year.
Two other executives were paid sign-on bonuses, of R1-million and R335 000.
“These bonuses were paid in lieu of benefits such as shares and bonuses these individuals were forfeiting by joining Altron. Sign-on bonuses are subject to entering into two-year work-back agreements with Altron,” it said.
The annual report shows that Nyati took home total pay of R19.7-million, which was made up of R4.9-million in guaranteed pay, R578 000 in pension payments, R4.8-million in performance-related bonuses, R6.5-million as the sign-on bonus and R2.8-million in share options.
Former CEO Venter was paid a total of R5.8-million, most of which was made up of share options (R3.6-million) and guaranteed pay (R1.8-million).
Total pay to executive directors was R29.9-million, while nonexecutive directors earned R10.8-million for their services. The highest paid nonexecutive director was former Dimension Data CEO Brett Dawson, who earned R2.4-million in terms of a consultancy agreement with Altron.
During the 2018 financial year, the overall total cost of employment increase for the Altron group was approved at 4.67% (compared to 4.8% in the 2017 financial year). This did not include wage employees, but only salaried employees. — (c) 2018 NewsCentral Media
