Massive 125% pay jump for MultiChoice CEO
DURBAN - Africa’s leading video entertainment company, the MultiChoice Group, increased the total remuneration of its chief executive, Calvo Mawela, by 125percent to $1.59million (R27.53m), up from $708 000 compared to 2019, according to its annual report released yesterday.
The amount for the year to end March 2020 includes an annual salary of $571 000, a pension of $67 000, benefits of $227 000 and short and medium-term incentive (STI) of $726 000. The group said the STI reflected bonus paid was based on the performance of the relevant financial year.
The STI paid to Mawela comes after the group reported a solid set of financial results for the year to end March. Highlights included a 38 percent growth in core headline earnings to R2.5billion and consolidated free cash flow increasing by 59percent to R5.2bn, driven mainly by an improvement in the trading results from the Rest of Africa, a focus on cost containment and a reduction in working capital.
The group’s chairperson and executive director, Imtiaz Patel, took home a total remuneration of $1.55m during the year, which was marginally up by 6.16 percent compared to last year’s $1.46m. However, Patel’s 2020 salary of $695 000 increased by 7.25 percent compared to last year’s salary of $648 000. Its chief financial officer, Tim Jacobs, took home a total remuneration package of R10.22m, up by 21 percent compared to last year’s R8.45m.
The group said Jacobs was appointed at the beginning of November 2018 and his remuneration for financial year 2019 reflects his earnings for the five months in the year.
The group’s chief executive: MultiChoice Africa Holdings, Brand de Villiers, saw his total remuneration package declining by 4.22percent to $977 000, down from last year’s $1.2m. The group said De Villiers was the chief operating officer (COO) until October 22, 2019, at which time he returned to the role of chief executive: MultiChoice Africa Holdings, and his pay is reported in relation to the time that he was the COO.
Chairperson of the remuneration committee, advocate Kgomotso Moroka, said the video entertainment industry was becoming more competitive, especially with the rise of global over-the-top players.
“Therefore, it is critically important that we adopt principles that allow us to attract and proactively retain our top talent. In addition, given the growth potential for our business, we also need to ensure our reward practices are aligned with the delivery of desired results and value creation over time,” Moroka said.
She added that the listing of the MultiChoice Group and its unbundling from Naspers provided an opportunity to develop a new fit-for-purpose remuneration strategy.
MultiChoice shares closed 0.37percent lower at R105.75 on the JSE yesterday.