A shopper walks past a Telkom shop at a mall in Johannesburg. Picture: REUTERS/SIPHIEW SEBEKO
A shopper walks past a Telkom shop at a mall in Johannesburg. Picture: REUTERS/SIPHIEW SEBEKO

Telkom paid about R36m less to executives in the 2018 financial year, though CEO Sipho Maseko received 5% more, the group’s annual report shows.

Remuneration for the executive management team totalled R164m in the year to March, according to the annual report, released on Tuesday.

This was primarily due to a drop in the number of the group’s executive directors in the period, to 43 from 47 in the 2017 financial year.

Maseko’s total package grew to R27.2m from R25.9m in 2017. His remuneration includes an R8m guaranteed package and R11.5m in vested shares.

Telkom chief financial officer Deon Fredericks received R13.5m, almost unchanged from 2017, which itself was an increase from 2016’s R9.4m.

During the period, the group was negatively affected by a 2.6% increase in operating expenses, while revenue remained flat.

The overall head count shrank by 3%, even as employee expenses rose 6%.

The group managed some impressive growth in mobile and data revenue, but this was offset by the continued fall in revenue from traditional fixed voice lines.

The annual report says the lack of significant growth in revenue reflects continued tough competition and a constrained operating environment, particularly as a result of reduced ICT expenditure by the public sector.

Remuneration policies tabled at the 2017 AGM got the nod from 96.43% of the group’s shareholders.