Telkom Group CEO Serame Taukobong nearly tripled his earnings in the 2025 financial year compared to 2024, with the company’s improved performance helping bolster his remuneration.
According to Telkom’s remuneration report (PDF) for the year to 31 March, released on Thursday, Taukobong raked in a total of R33.3-million, up 168% from the R12.4-million he received the prior year. The bulk of the increase was due to the vesting of long-term incentives as well as short-term incentives tied to his – and the group’s – performance.
Telkom’s improved performance over the course of the 2025 financial year, which ended on 31 March, led to the operator resuming dividends – and even paying a special dividend – after four years of the payouts being suspended.
“This year’s robust performance and strategic execution allow us to share the fruits of our success with shareholders by distributing both an ordinary and a special dividend. In total, the group will return R1.3-billion to its shareholders,” Telkom said in a statement last month alongside its annual results.
Telkom declared a final dividend of R1.63/share and a special dividend of 98c/share flowing from the sale of its masts and towers business, Swiftnet, to a consortium made up of private equity group Actis and Royal Bafokeng Holdings.
Shareholders were not the only ones to benefit from the group’s improved performance, with many of Telkom’s executives seeing jumps in their pay, also thanks to performance bonuses.
The guaranteed pay portion of Taukobong’s package changed only slightly from the previous year, rising 5.5% from R9.4-million in 2024 to R9.9-million in 2025. According to Telkom’s remuneration report, the 5.5% increase was implemented across the group’s executive structures and was aligned with inflation.
LTIs and STIs
The big differentiators in Taukobong’s remuneration came from incentives. Long-term incentives (LTIs) vested to Taukobong amounted to R13.4-million; Taukobong had no LTIs vest in 2024. Telkom said its LTIs are designed to reward sustainable long-term performance and attract, motivate and retain key talent. Taukobong has been at Telkom’s helm since 2021.
Taukobong’s short-term incentives (STIs) shot up by an impressive 233% from just under R3-million to R10-million in 2025. Telkom’s STIs are an annual cash incentive award made to eligible participants, including executives, at the end of the financial year. It is determined based on the achievement of individual and group performance targets.
Read: MTN CEO edges Vodacom rival in pay stakes – but just barely
The CEO’s performance scorecard focuses on three core pillars: strategy execution, leadership and contribution to Telkom’s ESG (environmental, social, governance) objectives. Strategy execution accounts for the bulk of the assessment, with a 60% weighting.
Although much of the strategy pillar is measured against the achievement of financial targets, leadership, employee development and succession management also play a significant role.
“The individual scorecards of executive directors aim to ensure that appropriate leadership and accountability are aligned with the successful execution of strategy and the achievement of both financial and non-financial outcomes defined at group and business unit levels,” said Telkom.
A comparison of Taukobong’s earnings against his counterparts at Vodacom Group and MTN Group – Shameel Joosub and Ralph Mupita – shows he earns less than they do, even though Telkom has outperformed them in recent years. TechCentral reported in June that excluding long-term incentives that vested, Joosub raked in a R46-million and Mupita R44-million in their companies’ most recent financial years. The comparable figure for Taukobong is R19.9-million.
But there’s more to the story.
At group level, Telkom’s operations are limited to South Africa, while Vodacom and MTN have operations in markets across Africa. Their operations are significantly larger, too. Trading on the continent has the potential for higher rewards – but the risk is also higher.
For example, Vodacom Group’s Egyptian operation has grown to be a significant contributor to group revenue since it was acquired from parent Vodafone Group in 2022. In contrast, MTN’s Nigerian operations – despite being the company’s largest market by revenue and customers – have been a drag on group performance due to high inflation and currency devaluation in that market.
While his earnings may be lower than his counterparts in absolute terms, Telkom’s improved performance in the past year earned him bonuses that narrowed the gap significantly.
Read: Capex clash: Vodacom, MTN and Telkom battle over network supremacy
“Overall group, business unit and individual performance directly impact the bonus pool that is approved for distribution. We exceeded on-target performance by 27% against the approved short-term incentive scheme plan and the board approved profit sharing of 14.3%, which results in a bonus pool of R711-million that will be distributed to all eligible employees,” said Telkom. – © 2025 NewsCentral Media
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