DURBAN – Blue Label Telecoms rewarded its joint chief executives Brett and Mark Levy with a total of R19.60 million in fixed remuneration for the year to end May.
Information from the company’s annual report this week showed that the payment included salaries, allowances and retirement benefits.
Brett Levy’s total remuneration rose to R9.73m with a fixed remuneration of R9.52m plus R211 000 as other benefits, while Mark’s total remuneration of R9.73m comprised R9.54m as fixed earnings as well as R195 000 as other benefits. The total cash equivalent value remuneration jumped to R13.20m for the two following an addition of R3.34m as restraint of trade award.
The group said the R13.20m cash equivalent value remuneration represented the total proceeds paid to the executive directors for the period between June 2019 and May 2020, inclusive of the cash element of basic remuneration, shortterm incentives (STIs), long-term incentives (LTIs) and dividends.
In June, Blue Label Telecoms said it expected its earnings to improve compared to last year’s losses of 727.81 cents a share, a headline loss of 312.49c as well as 304.77c on its core headline loss.
The group said it took a massive hit due to Cell C’s trading losses, impairment of its property, plant and equipment, the impact of a derecognition of its deferred tax asset and the consequent impairment of Blue Label’s total investment. It said its results would also be offset by the closures of its WiConnect retail stores as a result of continued losses. The annual report showed financial director Dean Suntup was paid a remuneration of R4.95m, which escalated to R5.16m when R207 000 other benefits were added. Suntup, and the joint chief executive, were paid R31.63m in total during the year as cash equivalent value remuneration for 2020, 7.76 percent lower than the amount of R34.29m paid in 2019.
The group’s five non-executive directors got a total of R6.85m for 2020, up 7.37 percent compared to last year’s amount of R6.38m. Blue Label’s Telecomms chairperson Laurence Nestadt received R2.07m during 2020, up from last year’s R1.95m. Remuneration committee chairperson Gary Harlow said the group’s revised remuneration policy brings them closer to best practice of fair and responsible remuneration aligned to shareholder interests and value creation.
“In choosing which financial metrics to use in STIs and LTIs, we benchmarked against our peers, considered best practice and, more importantly, incorporated the specific business goals of Blue Label. In the implementation of our policy, we have partnered with our business divisions to ensure that the policy and associated metrics are aligned to the operational strategy and the talent requirements of Blue Label,”