MTN Group Ltd. awarded former Chief Executive Officer Sifiso Dabengwa a 23.7 million rand ($1.6 million) payout for resigning from Africa’s biggest wireless operator after the company was fined a record $5.2 billion by Nigerian regulators.
The payout equates to almost three years basic salary and took Dabengwa’s total 2015 remuneration to 40.6 million rand, Johannesburg-based MTN said in the company’s annual report published on Monday. Michael Ikpoki, the former head of the operator’s Nigeria unit, who also left in the wake of the penalty, was awarded 17.3 million rand in compensation.
MTN shares fell 1.3 percent to 145.47 rand as of 12:47 p.m. in Johannesburg, valuing the company at 268 billion rand. The stock has declined 24 percent since the fine, later reduced to $3.9 billion, was made public in October.
The two executives were rewarded even after they resigned to take responsibility for the Nigeria penalty, which equates to about three years of MTN’s earnings before interest, taxes, depreciation and amortization in the country. The penalty was imposed on the company for missing a deadline to disconnect 5.1 million subscribers that the government had deemed to be unregistered in Nigeria, which is tightening security as it battles an Islamist insurgency. Read more