Telkom considers its Annual General Meeting, conducted on Friday, 27 September, a success as all proposed resolutions, ordinary and special, have been passed by the shareholders.
Says Telkom Group CEO Sipho Maseko, “This outcome is extremely encouraging as it is indicative of greater alignment between Telkom and its shareholders. Moreover it is a result of a stable relationship between management and the board.”“In the past six months since assuming office, much has been done to align the interests of, and to build the trust between Telkom, its employees and its shareholders. The success of the 2013 AGM and the overwhelming approval of all resolutions was testament of that.”
“It was telling that the lowest vote count on any of the resolutions was 79.6%. This level of support propels us further as we gain momentum in turning the Company around.”
A key resolution passed at the AGM was the re-election of the members of the Board that were up for re-election including that of the Chairman, Mr Jabu Mabuza. This confirms the confidence the shareholders have on the Board and Telkom leadership to turn the company around.
Another key resolution passed at the AGM was the approval of a new employee reward system that aims to align the performance of all Telkom staff with clear performance indicators. The proposed reward system will base performance rewards on the individual performance, the financial performance of the company and the successful delivery on its turnaround strategy.
“Going forward our remuneration policy will be more performance driven and will ensure greater alignment of all staff to clear performance linked indicators particularly improved customer service, total shareholder return and operational free cash flow.”
“I believe that this will encourage employees to take ownership of, and support the turnaround process. This will also encourage the employees to support initiatives that will improve specific areas of concern that needed to be improved. These included resetting the cost base, creating a new affinity with customers and ensuring a sustainable mobile business,” he adds.
“Ultimately we want to drive a strong performance culture that recognises and rewards exceptional performance of the Company, teams and of individuals.”
“The company is embarking on a strategy review which is supported by the Board. Further detail of the strategic review process will be shared at the upcoming Interim Financial Results in November,” concluded Mr Maseko.