Here's Why Telkom SA SOC Ltd's (JSE:TKG) CEO Compensation Is The Least Of Shareholders' Concerns

Explore Telkom SA SOC's Fair Values from the Community and select yours

Key Insights

• Telkom SA SOC will host its Annual General Meeting on 21st of August
• Total pay for CEO Serame Taukobong includes R9.92m salary
• The total compensation is similar to the average for the industry
• Over the past three years, Telkom SA SOC's EPS grew by 1.2% and over the past three years, the total shareholder return was 24%

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Under the guidance of CEO Serame Taukobong, Telkom SA SOC Ltd (JSE:TKG) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 21st of August. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Telkom SA SOC

How Does Total Compensation For Serame Taukobong Compare With Other Companies In The Industry?

Our data indicates that Telkom SA SOC Ltd has a market capitalization of R27b, and total annual CEO compensation was reported as R20m for the year to March 2025. We note that's an increase of 60% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at R9.9m.

On examining similar-sized companies in the South Africa Telecom industry with market capitalizations between R18b and R56b, we discovered that the median CEO total compensation of that group was R20m. From this we gather that Serame Taukobong is paid around the median for CEOs in the industry. Furthermore, Serame Taukobong directly owns R14m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	R9.9m	R9.5m	50%
Other	R10m	R3.0m	50%
Total Compensation	R20m	R12m	100%

On an industry level, around 47% of total compensation represents salary and 53% is other remuneration. Telkom SA SOC is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Telkom SA SOC Ltd's Growth

Telkom SA SOC Ltd's earnings per share (EPS) grew 1.2% per year over the last three years. It achieved revenue growth of 3.7% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Telkom SA SOC Ltd Been A Good Investment?

Telkom SA SOC Ltd has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

So you may want to check if insiders are buying Telkom SA SOC shares with their own money (free access).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.