MTN ties $9.5m executive pay to performance targets

MTN Group Ltd., Africa’s largest telecom operator, has awarded about 160 million rand ($9.5 million) in shares to its top executives, tightening the link between leadership pay and long-term performance.

The awards, disclosed in a regulatory filing after Tuesday’s market close, were granted on March 31 under the company’s Performance Share Plan and will vest over three years through December 2028.

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Ralph Mupita, the group chief executive officer received the largest allocation, with shares valued at nearly R40 million ($2.4million).

Ferdinand Moolman, CEO of MTN South Africa was awarded about R20.1 million ($1.2 million), while Karl Toriola MTN Nigeria CEO, received R5.5 million ($326,000). Stephen Blewett, CEO of MTN Ghana, was granted shares worth R4.1 million ($243,000). Other senior executives and company secretaries received smaller allocations.

The stock awards are tied to strict performance conditions. MTN assesses executives based on shareholder returns, free cash flow, return on equity, and environmental, social and governance targets. These include expanding broadband coverage, improving diversity, and meeting net-zero commitments.

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Executives only realise the full value of the shares if the company meets these targets. Missed goals reduce payouts, reinforcing a pay-for-performance model.

The structure serves both as a reward and a retention tool, ensuring top executives remain focused on delivering sustained growth. It also sends a signal to investors that MTN is aligning management incentives with long-term value creation.

The move comes as telecom operators across Africa face rising capital costs, currency volatility, and increasing competition in data and fintech services. By tying compensation to multi-year performance metrics, MTN is seeking to maintain strategic discipline while keeping its leadership team invested in the company’s future.