Telkom Integrated Annual Report 2020

Executive directors’ total remuneration

The aggregate remuneration, benefits paid and STIs approved in respect of FY2020

	GP		STI		Motor car insurance		Funeral benefit		LTI (vested shares)		Dividend paid on unvested shares		Total FY2020		Pension TRF percentage of basic pensionable salary*
SN Maseko	8 830 449		–		11 997		296		10 531 129		2 443 176		21 817 046		989 010
TBL Molefe	4 712 456		–		–		296		–		717 335		5 430 087		355 319
	13 542 905		–		11 997		591		10 531 129				27 247 132		1 344 329

* Employees have the flexibility to determine company pension contributions.

The aggregate remuneration, benefits paid and STIs approved in respect of FY2019

	GP		STI		Motor car insurance		Funeral benefit		LTI (vested shares)		Dividend paid on unvested shares		Total FY2020		Pension TRF percentage of basic pensionable salary*
SN Maseko	8 291 500		7 006 091		11 997		99		5 301 396		2 568 699		23 179 782		928 648
TBL Molefe	3 155 663		2 308 254		–		99		–		576 660		6 040 676		237 937
DJ Fredericks	1 432 988		500 000		2 999		–		1 650 085		1 179 285		4 765 557		152 756
	12 880 151		9 814 345		14 996		198		6 951 681		4 324 644		33 986 015		1 319 341

* Employees have the flexibility to determine company pension contributions.

Prescribed officers’ remuneration

The aggregate remuneration, benefits paid and STIs approved for FY2020 are set out in the following table.

FY2020 emoluments per prescribed officer

	GP		STI		Motor car insurance		Funeral benefit		Severance pay		Leave payments		LTI (vested shares)		Total FY2020		Pension TRF percentage of basic pensionable salary*
AN Samuels	5 407 500				11 997		296		6 135 433		409 429		7 510 337		19 474 991		407 726
DJ Fredericks¹	3 510 819				6 998		172		5 671 324		417 689		16 468 616		26 075 619		374 253
NM Lekota	3 766 273				–		296						–		3 766 569		395 459
AC Beukes	4 240 000				11 997		296						205 528		4 457 820		385 840
S Taukobong	6 300 000				11 997		296						–		6 312 292		573 300
PJ Bogoshi	5 123 000				–		296						–		5 123 296		499 493
CJ Moganwa²	3 750 000				–		222				19 231		–		3 769 452		372 000
LM Siyo3	3 891 111				11 997		246						–		3 903 354		204 489
LTS Maloba4	3 915 963				8 997		296		–		–		–		3 925 256		330 899
	39 904 667		–		63 981		2 414		11 806 757		846 349		24 184 481		76 808 649		3 543 458

1	Employee retired as Chief Investment Officer.
2	Employee resigned.
3	Employee was appointed to Telkom SA SOC Ltd with effect from 1 June 2019.
4	Alignments of employee’s grade.
*	Employees have the flexibility to determine company pension contributions.

Non-executive directors’ fees

The group benefits from non-executive directors who attend meetings and actively contribute to the success of our business. Therefore, non-executive directors receive an annual retainer plus meeting attendance fees. They do not receive STIs or LTIs. Telkom’s MOI states that shareholders must approve these fees at the AGM. The current fees were approved at the AGM on 27 August 2019.

Non-executive directors’ fees (rand per annum)	FY2020		FY2019
Annual retainer
Chairperson of the board	1 446 635		1 364 750
Non-executive director of the board	424 000		400 000
International board member	584 908		551 800
Fee per meeting
Audit committee chairperson	384 250		362 500
Audit committee member	201 400		190 000
Remuneration committee chairperson	231 080		218 000
Remuneration committee member	138 788		131 000
Nominations committee chairperson	153 699		145 000
Nominations committee member	104 091		98 200
Investment and transactions committee chairperson	213 132		150 800
Investment and transactions committee member	138 860		98 200
Risk committee chairperson	224 932		212 200
Risk committee member	134 832		127 200
Social and ethics committee chairperson	231 080		218 000
Social and ethics committee member	138 860		131 000

The investment and transactions committee scheduled meetings increased from three to four and the audit committee from four to five. Therefore, the difference in fees from a comparative point of view can be misconstrued as an increase in meeting fees.

FY2019 emoluments per prescribed officer

	GP		STI		Motor car insurance		Funeral benefit		Severance pay		LTI (vested shares)		Total FY2020		Pension TRF percentage basic pensionable salary*
TBL Molefe	1 051 888		769 418		–		–						1 821 306		79 312
DJ Fredericks	4 298 963		1 500 000		8 997		99						5 808 059		458 269
PJ Bogoshi	3 916 667		2 882 223		–		99						6 798 989		381 875
S Taukobong	5 000 000		3 665 238		8 997		99						8 674 334		455 000
AN Samuels	5 150 000		3 414 416		11 997		99				1 150 851		9 727 363		388 310
CJ Moganwa	1 181 151		–				74						1 181 225		102 598
AC Beukes	1 287 398		815 893		3 612		99		–		–		2 107 002		116 167
LTS Maloba	3 552 500		1 777 150		–		99		–		–		5 329 749		300 186
NM Lekota	3 493 760		2 553 963		–		99		–		–		6 047 822		366 845
L Siyo	2 933 333		1 760 000		10 997		–		–		–		4 704 330		58 667
IM Russell	833 333		–		2 999		–		3 066 987		7 079 081		10 982 400		65 000
Total	32 698 993		19 138 301		47 599		767		3 066 987		8 229 932		63 182 579		2 772 229

Executives’ and prescribed officers’ emoluments are set out in the annual financial statements in note 39, which is available online at https://www.telkom.co.za/ir/financial/financial-results-2020.shtml.

Executive management

	GP		STI		Motor car insurance		Funeral benefit		Transfer
Executive management team	111 435 466		–		388 887		11 010		237 125
Number of employees

 

	Sign-on bonus		Severance pay		Leave payments		LTI (vested shares)		Total FY2020		Total FY2019
Executive management team	700 000		6 019 859		503 250		22 063 122		141 358 718		165 500 172
Number of employees									41		43

A summary of the number of meetings and fee per meeting are reflected below:

	Committee	Scheduled meetings					Fee per meeting R		Fee per special meeting R
	Board	5			Annual retainer				Chairperson: 27 030 Board members: 20 246
	Audit	5			Chairperson		76 850
					Member		40 280
	Remuneration	4			Chairperson		57 770
					Member		34 697
	Nominations	3			Chairperson		51 233
					Member		34 697
	Investment and transactions	4			Chairperson		53 283
					Member		34 715
	Risk	4			Chairperson		56 233
					Member		33 708
	Social and ethics	4			Chairperson		57 770
					Member		34 715

Board members do not receive fees for voluntarily attending a committee meeting of which they are not members.

The investment and transactions committee scheduled meetings increased from three to four and the audit committee from four to five. Therefore, the difference in fees from a comparative point of view should not be misconstrued as an increase in meeting fees.

All fees are paid proportionally to the period in which office is held. Non-executives directors’ emoluments are set out in the annual financial statements in note 39, which is available online at https://www.telkom.co.za/ir/financial/financial-results-2020.shtml.

Beneficial shareholding

Directors’ shareholding as at 31 March 2020

		Beneficial				Non-beneficial
Directors’ and prescribed officers’ interests		Direct		Indirect		Direct		Indirect
Executive directors
SN Maseko		52 520		–		–		–
TBL Molefe		9 716		–		–		–
Total		62 236		–		–		–
Non-executive directors
KW Mzondeki		748		–		–		–
Total		748		–		–		–

The beneficial interest of SN Maseko decreased from 143 561 to 52 520 due to shares disposal in terms of the forteitable share plan (FSP). The beneficial interest of TBL Molefe increased from 6 000 to 9 716 due to purchase of shares. Other than these changes, there was no change to directors’ shareholding between 31 March 2020 and the approval date of the integrated report.

Directors’ shareholding as at 31 March 2019

		Beneficial				Non-beneficial
Directors’ and prescribed officers’ interests		Direct		Indirect		Direct		Indirect
Executive directors
SN Maseko		143 561		–		–		–
TBL Molefe		6 000		–		–		–
Total		149 561		–		–		–
Non-executive directors
JA Mabuza		11 500		–		–		–
I Kgaboesele		12 000		–		–		–
KW Mzondeki		748		–		–		–
Total		24 248		–		–		–

Share awards (LTIP)

	Year of the award (June)		Shares awarded		Share award price R		Face value of award R		Vested shares
SN Maseko
FSP	2013		163 866		23.80		3 900 011		81 933
									36 870
									–
Additional share awards (ASA)	2013		54 622		23.80		1 300 004		54 622
FSP	2014		138 352		76.11		10 529 971		51 882
									26 979
									13 835
FSP	2015		150 428		74.20		11 161 758		41 368
									–
TSA	2015		50 143		74.20		3 720 611		25 072
									25 071
FSP	2016		197 066		56.64		11 161 818		98 533
TSA	2016		65 689		56.64		3 720 625		32 845
									32 844
FSP	2017		161 366		74.83		12 075 018		–
TSA	2017		53 789				4 025 031		–
FSP	2018		220 912		56.30		12 437 346
FSP	2019		196 596		80.85		15 894 787
Total			1 452 829				89 926 977		521 854
TBL Molefe
FSP	2017		40 943		74.83		3 063 765		–
TSA	2017		68 238		74.83		5 106 250		–
FSP	2018		56 051		56.30		3 155 671
FSP	2019		58 286		80.85		4 712 423
Total			223 518				16 038 109		–
DJ Fredericks
FSP	2013		74 898		23.80		1 782 572		37 449
									16 852
									–
ASA	2013		27 236		23.80		648 217		27 236
FSP	2014		86 705		76.11		6 599 118		32 514
									16 907
									8 671
FSP	2015		53 066		74.20		3 937 497		14 593
									–
									9 354
FSP	2016		69 043		57.03		3 937 522		34 522
									26 467
FSP	2017		55 776		74.83		4 173 718		36 658
TSA	2017		92 961		74.83		6 956 272		72 303
FSP	2018		76 359		56.30		4 299 012		28 677
FSP	2019		51 491		80.85		4 163 047		4 955
Total			587 535				36 496 975		367 158

 

	Vesting date		Vesting price R		Value of vested shares R		Shares forfeited		Closing number
SN Maseko
FSP	06/06/2016		59.63		4 885 665		–		–
	05/06/2017		78.76		2 903 881		12 290
	01/06/2018				–		32 773
Additional share awards (ASA)	06/06/2016		59.63		3 257 110		–		–
FSP	05/06/2017		78.76		4 086 226		17 294		–
	01/06/2018		52.39		1 413 430		14 527
	03/06/2019		93.72		1 296 616		13 835
FSP	01/06/2018		52.39		2 167 270		33 846		30 085
	03/06/2019		93.72		–		45 129
TSA	06/06/2016		59.63		1 495 043		–		–
	05/06/2017		78.76		1 974 592
FSP	03/06/2019		93.72		9 234 513		–		98 533
TSA	05/06/2017		78.76		2 586 872		–		–
	01/06/2018		52.39		1 720 697
FSP	–		–		–		–		161 366
TSA	–		–		–		–		53 789
FSP									220 912
FSP									196 596
Total					37 021 915		169 694		761 281
TBL Molefe
FSP			–		–		–		40 943
TSA			–		–		–		68 238
FSP									56 051
FSP									58 286
Total					–		–		223 518
DJ Fredericks
FSP	06/06/2016		59.63		2 233 084		–		–
	05/06/2017		78.76		1 327 264		5 617
	01/06/2018		52.39		–		14 980
ASA	06/06/2016		59.63		1 624 083		–		–
FSP	05/06/2017		78.76		2 560 803		10 839		–
	01/06/2018		52.39		885 758		9 105
	03/06/2019		93.72		812 646		8 671
FSP	01/06/2018		52.39		764 527		11 940		–
	03/06/2019		93.72		–		15 920
	31/10/2019		69.62		651 193		1 259
FSP	03/06/2019		93.72		3 235 402		–		–
	31/10/2019		69.62		1 842 541		8 054
FSP	31/10/2019		69.62		2 552 004		19 118		–
TSA	31/10/2019		69.62		5 033 486		20 658		–
FSP	31/10/2019		69.62		1 996 394		47 682		–
FSP	31/10/2019		69.62		344 950		46 536		–
Total					25 864 134		220 379		–

 

	Year of the award (June)	Shares awarded	Share award price R	Face value of award R	Vested shares
AN Samuels
FSP	2014	55 629	76.11	4 233 923	20 861
					10 848
					5 563
FSP	2015	40 431	74.20	2 999 980	11 119
					–
					7 812
FSP	2016	59 179	57.03	3 374 978	29 590
					25 521
FSP	2017	50 114	74.83	3 750 031	38 818
TSA	2017	83 523	74.83	6 250 026	76 563
FSP	2018	91 475	56.30	5 150 043	45 089
FSP	2019	66 883	80.85	5 407 491	14 481
Total		447 234		31 166 472	286 265
NM Lekota
FSP	2016	21 042	57.03	1 200 025	10 521
FSP	2017	33 997	74.83	2 543 996	–
TSA	2017	33 997	74.83	2 543 996	–
FSP	2018	46 542	56.30	2 620 315
FSP	2019	46 583	80.85	3 766 236
Total		182 161		12 674 566	10 521
CJ Moganwa
LTIP	2018	–	–	–	–
FSP	2019	42 777	80.85	3 458 520
TSA		23 191		1 874 992
Total		65 968		5 333 513	–
PJ Bogoshi
FSP	2018	62 611	56.30	3 524 999	–
FSP	2019	63 364	80.85	5 122 979
Total		125 975		8 647 979	–
S Taukobong
FSP	2018	79 930	56.30	4 500 059	–
TSA	2018	106 573	56.30	6 000 060	–
FSP	2019	53 899	80.85	4 357 734
Total		240 402	193	14 857 853	–
AC Beukes
FSP	2014	21 926	76.11	4 233 923	8 222
					4 276
					2 193
FSP	2015	12 500	74.20	927 500	3 438
					–
FSP	2018	24 636	56.30	1 387 007	–
TSA	2018	20 819	56.30	1 172 110	–
FSP	2019	36 275	80.85	2 932 834
Total		116 156		10 653 373	18 129
LTS Maloba
FSP	2018	22 085	56.30	1 243 386	–
FSP	2019	46 356	80.85	3 747 883
Total		68 441		4 991 268	–
LM Siyo
FSP	2018	–	–	–	–
FSP	2019	37 106	80.85	3 000 020
Total		37 106		3 000 020	–

 

	Vesting date	Vesting price R	Value of vested shares R	Shares forfeited	Closing number
AN Samuels
FSP	05/06/2017	78.76	1 643 012	6 954	–
	01/06/2018	52.39	568 327	5 841
	03/06/2019	93.72	521 364	5 563
FSP	01/06/2018	52.39	582 524	9 097	–
	03/06/2019	93.72	–	12 129
	31/03/2020	20.24	158 120	274
FSP	03/06/2019	93.72	2 773 175	–	–
	31/03/2020	20.24	516 561	4 068
FSP	31/03/2020	20.24	785 701	11 296	–
TSA	31/03/2020	20.24	1 549 683	6 960	–
FSP	31/03/2020	20.24	912 630	46 386
FSP	31/03/2020	20.24	293 104	52 402
Total			10 304 201	160 970
NM Lekota
FSP		–	–	–	10 521
FSP		–	–	–	33 997
TSA		–	–	–	33 997
FSP					46 542
FSP					46 583
Total			–	–	171 640
CJ Moganwa
LTIP		–	–	–	–
FSP				42 777	–
TSA				23 191	–
Total				65 968	–
PJ Bogoshi
FSP		–	–	–	62 611
FSP					63 364
Total				–	125 975
S Taukobong
FSP	–	–	–	–	79 930
TSA	–	–	–	–	106 573
FSP					53 899
Total	–	–	–	–	240 402
AC Beukes
FSP	05/06/2017	78.76	647 565	2 741	–
	01/06/2018	52.39	224 020	2 302
	03/06/2019	93.72	205 528	2 192
FSP	01/06/2018	52.39	180 117	2 812	2 500
	03/06/2019	93.72	–	3 750
FSP	–	–	–	–	24 636
TSA	–	–	–	–	20 819
FSP					36 275
Total			1 257 229	13 797	84 230
LTS Maloba
FSP		–	–	–	22 085
FSP					46 356
Total	–		–	–	68 441
LM Siyo
FSP		–	–	–	–
FSP					37 106
Total				–	37 106