Lagos, Nigeria – The Chief Executive Officer of MTN Nigeria Communications, Mr. Karl Toriola, has addressed concerns regarding the remuneration of the company’s Board of Directors despite the current challenging economic conditions.
During the Annual General Meeting (AGM) held last week in Lagos, shareholder Olushola Makindipe questioned the board’s compensation, noting the disparity between the directors’ remuneration and the company’s financial struggles. MTN Nigeria has reported significant losses due to inflation and naira devaluation, resulting in no dividends for shareholders.
In response, Toriola emphasized that the payment to the board is not excessive and reflects a fair compensation necessary to attract and retain experienced directors. He highlighted the extensive time and effort the board members invest in overseeing the company’s governance, noting that some committees met 28 times in the past quarter alone.
“The Board fees must reflect what is competitive,” Toriola stated. “The Directors themselves are conscious of the economic situation and deploy significant time into the oversight of this company, especially during challenging periods. We must balance getting the best quality Board of Directors, with relevant experience and high ethical standards, at a fair rate.”
At the AGM, it was resolved that the annual fees for the Chairman and each Non-Executive Director for the financial year ending December 31, 2024, and succeeding years until reviewed, would be N54,120,000 and N36,285,000 respectively.
Toriola also discussed measures taken to mitigate the economic challenges, including cutting capital expenditure to below 10% of revenue and restructuring significant contracts to reduce costs. He mentioned that the company had efficiently restructured its balance sheet, raising bonds at favorable rates, and managed a mix of naira and dollar debt to maintain low borrowing costs.
“We are navigating a volatile market, and we are not alone in facing these challenges. Companies across various industries are experiencing similar issues due to inflation and currency devaluation,” Toriola explained. “We are committed to overcoming these challenges and restoring dividends in the near future.”
The CEO concluded by acknowledging the need for a tariff increase to ensure the sustainability of the telecom industry, highlighting the board’s ongoing efforts to adapt to the economic landscape and secure the company’s long-term success.
