Board of Directors’ remuneration not excessive — MTN CEO

Chief Executive Officer of MTN Nigeria Communications, Mr. Karl Toriola has explained why the telecommunication company can’t cut down on the Board of Directors’ remuneration despite the challenging operating environment.

Toriola spoke while responding to questions during the Annual General Meeting (AGM) of the company held last week in Lagos, saying the payment to the board of directors was not excessive.

At the AGM, a shareholder identified as Olushola Makindipe had questioned the remuneration of the Directors, saying it does not reflect the challenges of the moment.

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

However, as part of the resolutions at the AGM, the 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.

The shareholder said, “Why we will not be going home with shares, 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.”

But responding, Toriola stated that the company was mindful of the need to take some austerity measures but the Directors’ fees are fair compensation which must be competitive.

More so he stated that members of the Board of Directors have been working assiduously to provide corporate guidance and direction for the company.

He said, “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.