MTN Nigeria Rewards Executives with Over 1.3 Million Shares

MTN Nigeria Communications Plc has vested 1.3 million ordinary shares in key staff members as part of its share-based compensation strategy. According to regulatory filings, the telecom giant distributed these shares between 26 and 27 March to reward top executives and management personnel.

How the Share Vesting Plan Works

Share vesting allows employees to earn company shares after meeting specific conditions. MTN Nigeria’s latest distribution benefited 33 employees, including four top executives:

Ukpanah Uto (company secretary) – 85,213 shares, Kadri Modupe (chief financial officer) – 187,496 shares, Ibrahim Yahaya (chief technical officer) – 96,726 shares, Sanya Odunayo (executive director, MTN Foundation) – 26,553 shares.

Additionally, 11 managers, nine senior managers, and nine general managers were also awarded shares.

MTN’s Employee Share Scheme Evolution

MTN Nigeria revamped its employee share schemes in 2022, introducing the Performance Share Plan (PSP) and the Employee Share Ownership Plan (ESOP). These replaced the previous Notional Plan Option.

The PSP, designed for management staff, grants shares annually based on performance targets, with a three-year vesting period. Employees under this scheme do not receive dividends during this time.

The ESOP, on the other hand, is a one-time share award for non-management staff, given at no cost and without performance conditions. The vested shares are released in three phases: after three, four, and five years from the grant date.

MTN Nigeria recorded an impressive N3.4 trillion in revenue last year. However, the company also reported a 192.2% increase in net loss, largely driven by significant foreign exchange losses.