Vodacom might no longer have the best data network in South Africa, according to a recent study, but that hasn’t stopped the cellular network provider’s chief executive Shameel Joosub from bagging himself a cool R64 million in earnings for the 2023 financial year.
A recent study, the Mobile Network Quality Report for the first quarter of 2024, said Vodacom’s rivals MTN, were now the best data network in South Africa. Vodacom was found to have the best 5G and the best network in Johannesburg.
But 2023 was a tough year for Joosub, who in his role as CEO and executive director at the Vodacom Group, made R3.1 million less than his cost to company for 2022 - representing a 4.7% decline in earnings.
His pre-tax salary was R64.3 million for 2023 and this was significantly lower than his 2022 salary that showed he made R67.5 million before tax.
According to Vodacom, Joosub made R 35.3 million in 2023 after tax and R37.1 after tax in 2022.
His compensation package can be broken down as follows:
– Base annual salary - R16.63 million
– Short-term incentive - R14.02 million
– Long-term incentive - R26.1 million
– Dividends - R7.4 million
Joosub has been at Vodacom since 1994 and has been CEO since 2012.
He has operated at a senior level in various companies across the Vodacom group, including managing director at Vodacom South Africa and CEO at Vodafone Spain.
Joosub holds board positions at Vodacom Group Limited, Safaricom Plc, and a number of subsidiary boards across the group.
According to Vodacom, he served on the Vodacom Group Board from 2000 until March 2011, when he was seconded to Spain. He was re-appointed to the Vodacom Group Board in September 2012.
Vodacom’s headline earnings for 2023
Vodacom showed strong revenue growth in the last quarter of 2023.
The company reported that it increased its revenue by 26.8% to R38.9 billion in the final quarter of 2023.
This boost in growth was assisted by the acquisition of Vodafone Egypt.
A thorn worth billions for Vodacom
Vodacom and the Please Call Me inventor Nkosana Makate, have been in a protracted legal battle over the service. Vodacom and Makate are currently in discussions about a settlement, which is no doubt play a major role in its headline earnings for 2024.
Earlier this year, the Supreme Court of Appeal (SCA) ordered Vodacom to pay Makate between 5% and 7.5% of the total revenue generated by the Please Call Me service that was derived from the prepaid or contract offerings from March 2001 to March 2021, including interest.
According to reports, that figure could be in excess of R20 billion.
Vodacom has approached the Constitutional Court seeking it to overturn the SCA ruling, and a decision has yet to be made.
In March, Makate told IOL Business he had agreed to meet with Vodacom in order to settle the issue, but to date no agreement has been made between both parties.
IOL BUSINESS