Vodacom CEO’s salary hit a staggering R61 million in 2024, a figure that raised eyebrows across South Africa’s corporate landscape. Shameel Joosub, the telecom giant’s leader, pocketed this hefty sum despite a 10.8% drop in headline earnings. Why does one person earn so much? The answer lies in Vodacom’s complex financials, strategic shifts, and the broader debate over executive pay.
This article unpacks Joosub’s compensation, Vodacom’s performance, and what it all means for businesses, shareholders, and professionals navigating South Africa’s economic terrain. Expect clear insights. Actionable advice follows!
Vodacom CEO’s Salary Breakdown
Shameel Joosub’s R61 million package for the 2024 financial year wasn’t a random number. It’s a carefully calculated mix of fixed pay, bonuses, and long-term incentives. Let’s break it down. His base salary, modest by CEO standards, formed a small slice. Short-term incentives, tied to performance metrics like revenue growth, added a chunk. The real weight came from long-term incentives (LTIs)—share-based rewards that vest over years. These LTIs, worth R17.3 million, dropped 39.9% from 2023’s R28.8 million. Why? Vodacom’s share price and earnings took a hit.
Dividends from prior share awards contributed R6.3 million, down 14.8%. After taxes, Joosub’s take-home pay was R33 million—a 4% dip from R34.3 million in 2023. Compare this to Vodacom’s CFO, Raisibe Morathi. Her package rose 6.2% to R30 million, with short-term incentives spiking 47% to R9.5 million. Post-tax, she netted R16.5 million. These numbers aren’t just digits. They reflect Vodacom’s strategy: reward leaders for navigating tough markets, but adjust for performance slumps.
For HR professionals, this breakdown offers a lesson. Align incentives with long-term goals, not just annual wins. Joosub’s LTIs, for instance, tie to share price growth over years, ensuring he’s invested in Vodacom’s future. Businesses can replicate this. Use a 60-40 split: 60% long-term rewards, 40% short-term bonuses. It balances immediate results with sustained growth.
Vodacom’s Financial Context: A Mixed Bag
Vodacom’s 2024 financials set the stage for Joosub’s pay. Revenue soared 26.4% to R150.6 billion, driven by service revenue growth of 29.1% to R120.9 billion. New services, consumer contracts, and prepaid mobile data fueled this. Impressive, right? But dig deeper. Headline earnings per share fell 10.8% to 846 cents. Net profit inched up 6.4% to R19.3 billion, but operating profit rose a solid 20.8% to R35.3 billion. What’s going on?
Challenges piled up. Start-up losses in Ethiopia, where Vodacom launched operations, stung. Higher finance and energy costs didn’t help. A weaker exchange rate across markets like Tanzania and Mozambique squeezed margins. Inflationary pressures forced Vodacom to absorb costs, hitting earnings. Yet, service revenue growth signals resilience. Prepaid mobile data and consumer contracts thrived, even as corporate clients cut spending due to less remote work.
For investors, this is a red flag. Earnings drops alongside a R61 million CEO salary spark questions. Is Joosub overpaid? The counterargument: his leadership drove revenue growth in a brutal market. Vodacom’s shift to mobile services, as offices reopened, shows strategic agility. Investors should check Vodacom’s net debt-to-EBITDA ratio—down to 0.9 from 1.1. It’s a sign of financial discipline, supporting Joosub’s high pay.
Comparing Vodacom’s CEO to Peers
How does Joosub’s R61 million stack up? South Africa’s top CEOs earn big, but numbers vary. MTN’s Ralph Mupita earned R84.1 million in 2023, per BusinessTech, boosted by share awards. Sasol’s Fleetwood Grobler took home R73 million. In contrast, Shoprite’s Pieter Engelbrecht earned R48 million—lower, but tied to stellar retail performance. Joosub’s R61 million sits in the upper tier, yet it’s not the highest.
Globally, telecom CEOs earn less than tech or finance chiefs. AT&T’s John Stankey earned $25 million (R450 million) in 2023, per Reuters. Verizon’s Hans Vestberg hit $20 million (R360 million). South African CEO pay, including Joosub’s, often outpaces global telecom peers due to currency effects and local market risks. Exchange rate volatility and political uncertainty inflate executive packages to retain talent.
For HR teams, benchmarking is key. Use industry reports like PwC’s “Executive Directors’ Remuneration” to compare pay. Telecom CEOs in emerging markets average R40–R80 million, per 2024 Deloitte data. Joosub’s package aligns here. When setting CEO pay, factor in market size, company revenue, and risk. Vodacom’s R150 billion revenue justifies a high salary, but earnings dips call for scrutiny.
Executive Pay Trends in South Africa
Executive pay in South Africa is a lightning rod. The gap between CEOs and workers fuels debate. In 2024, the median CEO-to-worker pay ratio was 272:1, per Just Share, a non-profit. At Vodacom, Joosub’s R61 million dwarfs the average employee’s R300,000 salary—a ratio of roughly 200:1. This gap, though lower than banking (400:1), stokes public anger in a country with 33% unemployment.
Trends are shifting. Short-term bonuses are losing favor. Companies like Vodacom emphasize LTIs—share awards tied to performance over 3–5 years. In 2024, 65% of JSE-listed firms used LTIs, up from 50% in 2020, per PwC. Why? It aligns CEOs with shareholders. Joosub’s R17.3 million LTI reflects this. But there’s a catch. Share price slumps, like Vodacom’s in 2024, slash LTI value, as seen in Joosub’s 39.9% drop.
For boards, here’s a takeaway. Cap short-term bonuses at 20% of total pay. Focus on LTIs but set clear targets: revenue growth, ESG goals, or share price gains. Vodacom’s board, for instance, ties 30% of Joosub’s LTIs to non-financial metrics like diversity. It’s smart. It signals accountability beyond profits. Businesses should follow suit, especially in South Africa’s unequal society.
Governance and Shareholder Perspectives
Shareholders aren’t thrilled. At Vodacom’s 2024 AGM, 20% voted against the remuneration policy, per the annual report. Why? Joosub’s R61 million feels steep when earnings per share fell 11.2%. The total dividend per share also dropped 11.9% to 590 cents. Investors want pay tied to results. Vodacom’s board defends Joosub, citing revenue growth and Ethiopia’s long-term potential. Fair point, but optics matter.
Governance is under the microscope. The King IV Code, South Africa’s corporate governance bible, demands “fair and responsible” pay. Vodacom complies, disclosing Joosub’s package in detail. Yet, public perception lags. A 2025 IOL article noted Joosub’s R20 million share sale, raising questions about insider confidence. Was he cashing out amid uncertainty? Vodacom clarified it was a planned sale, but trust wanes.
For companies, transparency is non-negotiable. Publish clear pay policies. Vodacom’s annual report, for example, explains Joosub’s LTIs link to 5-year share performance. Shareholders appreciate this. Boards should also engage investors pre-AGM to address pay concerns. A 10% dissent vote is a warning; 20% is a crisis. Act early.
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Future Outlook: Vodacom CEO’s salary
What’s next? Vodacom’s Ethiopia bet could pay off. Analysts predict a 15% revenue boost by 2027, per Reuters. If so, Joosub’s pay may climb, especially LTIs tied to shares. But risks loom. Regulatory hurdles in Ethiopia and currency volatility could derail growth. Earnings must rebound to justify high pay.
CEO pay trends lean toward restraint. Globally, 2025 saw 30% of Fortune 500 firms cap CEO salaries, per Bloomberg. South Africa may follow. The ANC’s 2025 push for pay gap laws could force Vodacom to rethink Joosub’s package. Boards must prepare. Scenario-plan for a 20% pay cut if laws tighten.
For readers, stay proactive. HR teams, update pay policies yearly. Executives, align with shareholder goals. Investors, monitor governance. Vodacom CEO’s salary isn’t just a number—it’s a window into strategy, fairness, and South Africa’s future. Act on these insights. The corporate world is watching!
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