At MTN Nigeria AGM, Shareholder Questions Directors Fat Remuneration Despite Losses

One of MTN Shareholders, Olushola Makindipe has questioned the huge remuneration of the leading telecommunication firm Board of Directors, stating that it does not reflect the challenges of the moment.

Olushola Makindipe raised eyebrow over the Directors remuneration during the Annual General Meeting (AGM) of the company held recently in Lagos, stating that, “Why we would not be going home with any share, those on the board are also going and I think about austerity, it should be from both the top and the bottom.

“Whatever is being given to board members does not reflect the economic situation of the company and if the truth needs to be said, you only need to take a quarter of what you are taking home or half of it but not as bogus as it has been brought to us.

“And I am saying so because we must all feel the pinch and we must all share in the burden.”

Reacting to Olushola Makindipe outburst, Chief Executive Officer of MTN Nigeria Communications, Mr. Karl Toriola explained why the telecommunication company cannot cut down on the Board of Directors’ remuneration despite the challenging operating environment.

In the words of the MTN Nigeria CEO, “The Board fees that we pay our Board of Directors must reflect what is competitive and the Board of Directors themselves are conscious of the economic situation. But they deploy an extensive period of time into the oversight and governance of this company.

“There are certain committees that have met 28 times in this quarter to ensure that they have full and proper oversight of the activities of the company particularly in a difficult and challenging micro period like this and we have to strike the balance between getting the best quality Board of Directors, with the relevant experience, with the highest standards of moral ethics and compliance and retain those boards of Directors at not an excessive rate but at a fair compensation because it entails an extensive quantity of works.

“But I assure you the board is conscious of the challenges and we always keep a close eye on that.”

As part of the resolutions at the AGM, the Board of Directors’ annual fees “for the financial year ending 31 December, 2024 and for succeeding years until reviewed by the Annual General Meeting” was fixed at N54,120,000 for the Chairman and N36,285,000 for each of the Non-Executive Directors respectively.

Recall that MTN Nigeria had posted huge losses due to inflation and naira devaluation which made it difficult to declare dividends for shareholders.

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