MTN Nigeria Awards 1.3 Million Shares to Staffs

MTN Nigeria Communications Plc has granted 1.3 million ordinary shares to key executives as part of its share-based compensation plan. According to regulatory filings, the mobile network operator awarded these shares to 33 employees between March 26 and 27.

Share Vesting as a Reward Strategy

MTN Nigeria uses share vesting to reward employees by allowing them to earn company shares over time, provided they meet specific conditions. This approach helps retain top talent and aligns employees’ interests with the company’s long-term growth.

Key Executives Receive Shares

According to disclosures filed with the Nigerian Exchange, several top executives benefited from this scheme. Company secretary Ukpanah Uto received 85,213 shares, chief financial officer Kadri Modupe got 187,496 shares, chief technical officer Ibrahim Yahaya was awarded 96,726 shares, and executive director of MTN Foundation, Sanya Odunayo, received 26,553 shares.

Additionally, the beneficiaries include 11 managers, nine senior managers, and nine general managers, further highlighting the company’s commitment to rewarding excellence at different levels.

MTN’s Employee Share Plans

In 2022, MTN Nigeria launched two new share schemes: the Performance Share Plan (PSP) and the Employee Share Ownership Plan (ESOP). These replaced the previous Notional Plan Option.

• PSP: This plan offers shares to management staff annually. The vesting period is three years, and the shares are fully awarded based on performance targets. Employees do not receive dividends during this period.
• ESOP: This one-time share award is given to qualifying non-management staff at no cost. It is not linked to company performance. The shares are distributed in three phases—vesting after three, four, and five years.

MTN Nigeria’s Financial Growth

Despite posting a record N3.4 trillion revenue last year, MTN Nigeria reported a 192.2% surge in net loss due to a significant foreign exchange loss. However, the company remains committed to employee incentives and long-term growth.