OPINIONISTA: There’s nothing wrong with MTN CEO Rob Shuter’s eye-watering salary By Ivo Vegter IvoVegter
. They wouldn’t have an employer that could pay its employees again next year. They wouldn’t have a halfway decent competitor to keep Vodacom in line.
There are very few people who have the education, experience, character and drive to run a large organisation, and even fewer who can do so successfully. Such people take extraordinary personal risks, including being legally liable for a wide range of things that can go wrong. They usually work longer hours than anyone else in the company. They rarely, if ever, get time off.
MTN has to match what Shuter could earn elsewhere, locally or abroad, or make do with someone who cannot demand as much pay. Shuter has extensive experience in both banking and telecoms, so the pool of potential rivals for his services is large. If MTN had been able to find someone of Shuter’s calibre for a lower price, they would surely have jumped at the opportunity.
What Shuter gets paid is a simple matter of economics. As soon as he falters, and fails to deliver on the performance targets set for him, you can be sure he’ll be gone faster than you can say “executive search”. As long as he produces the goods, he has earned the pay to which the shareholder-approved remuneration policy entitles him. It works no different from anyone else’s job.
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