CORPORATE ACCOUNTABILITY
MTN moves towards more openness — but there’s no haste
Although a hefty 32% of shareholders voted against MTN’s remuneration implementation report, only 0.001% of them participated in a teleconference called to engage with the company on the issues raised by the report. Bishop Jo Seoka, chairman of Active Shareholding, which provides voting advice to non-governmental organisation (NGO) clients and was one of two shareholders to have participated in the teleconference, described the level of engagement as disheartening. "Evidently institutional shareholders believe they have fulfilled their duties by just voting and nothing more needs to be done. This level of engagement may explain why executive remuneration has got out of hand," said Seoka. He added that the alternative explanation for the low rate of participation was that MTN had engaged with the large shareholders privately and thus circumvented the more public teleconference process. "That is surely not in keeping with the spirit or intention of the regulations," said Seoka.
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