Should Shareholders Reconsider MTN Group Limited's (JSE:MTN) CEO Compensation Package?

Key Insights

• MTN Group's Annual General Meeting to take place on 29th of May
• Total pay for CEO Ralph Mupita includes R18.8m salary
• Total compensation is similar to the industry average
• MTN Group's EPS declined by 84% over the past three years while total shareholder loss over the past three years was 15%

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The results at MTN Group Limited (JSE:MTN) have been quite disappointing recently and CEO Ralph Mupita bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 29th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for MTN Group

Comparing MTN Group Limited's CEO Compensation With The Industry

According to our data, MTN Group Limited has a market capitalization of R219b, and paid its CEO total annual compensation worth R92m over the year to December 2024. We note that's an increase of 46% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at R19m.

In comparison with other companies in the South Africa Wireless Telecom industry with market capitalizations over R144b, the reported median total CEO compensation was R73m. This suggests that MTN Group remunerates its CEO largely in line with the industry average. Moreover, Ralph Mupita also holds R141m worth of MTN Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	R19m	R18m	20%
Other	R73m	R45m	80%
Total Compensation	R92m	R63m	100%

Talking in terms of the industry, salary represented approximately 37% of total compensation out of all the companies we analyzed, while other remuneration made up 63% of the pie. MTN Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

MTN Group Limited's Growth

MTN Group Limited has reduced its earnings per share by 84% a year over the last three years. Its revenue is down 15% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has MTN Group Limited Been A Good Investment?

With a three year total loss of 15% for the shareholders, MTN Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at MTN Group.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.