MTN CEOs Were Paid $2.8 Million Severance Package

According to Bloomberg, MTN Group’s annual report surfaced on Monday, in Johannesburg, South Africa, the former chief executive officer of MTN Group in South Africa, Mr. Sifiso Dabengwa, and his equal in Nigeria, Mr. Mike Ikpoki, were paid $2.8 million (about N560 million) as a severance package after they were forced to resign, following the N1.04 trillion fine imposed on MTN Nigeria by the Nigerian Communications Commission (NCC).

The report said Dabengwa was handed a 23.7 million rand ($1.6 million) payout for resigning and Ikpoki, the sum of 17.3 million rand ($1.2 million) in compensation, totalling $2.8 million (N560 million), which equates to about three years of MTN’s earnings before interest, taxes, depreciation and amortization (EBITDA).

MTN was initially fined N1.04 trillion in October last year, for contravening the directives of the NCC on unregistered SIM card deactivation but was later reduced to N780 billion.

According to the report, MTN shares fell 1.7 percent to 144.86 rand as of 3.08 pm in Johannesburg, valuing the company at 267 billion rand. The stock has declined 24 percent since the fine was made public.

The former CEO of MTN, Phuthuma Nhleko, who returned as executive chairman to resolve the Nigeria crisis after Dabengwa resigned, was said to have been paid 5 million rand to work from November 9 until the end of the year. His contract runs until May 9, indicating a total payout of 17.5 million rand for six month’s work. He may also be due a bonus when his contract expires, according to the annual report. The company expects to name a new CEO by the end of June.

Nigeria is the biggest of MTN’s 22 markets across Africa and the Middle East, with about 61 million subscribers.