Vodacom Group is spending approximately R7.7-million annually on personal security for CEO Shameel Joosub, according to the company’s FY2026 integrated report. This expenditure, previously undisclosed as a standalone line item, surfaced following a South African Revenue Service (Sars) ruling that classified such protection as a taxable fringe benefit, forcing the company to restate prior-year financial disclosures.
How are security costs hidden in executive pay?
Companies often bundle executive protection costs into “other benefits” categories within remuneration tables. At Vodacom, the R7.74-million security cost for Joosub is combined with a minor cellphone benefit. According to the company’s integrated report, this figure was only identifiable by comparing the FY2026 data against the restated FY2025 report. In the original FY2025 filing, the “other” category for Joosub was listed as just R19 800; after the Sars ruling, this was restated to R7.32-million to account for security arrangements.
The restatement of Vodacom’s FY2025 figures increased the CEO’s total single-figure remuneration from R71.1-million to R78.4-million, with the difference almost entirely attributed to the newly disclosed security costs.
Why does executive security spending vary across the sector?
Transparency regarding security spending differs significantly between major South African telecommunications firms. While Vodacom has moved to include these costs in its remuneration tables, MTN Group provides less detail. According to MTN’s FY2025 remuneration report, CEO Ralph Mupita earned R75.7-million, with R1.37-million allocated to an undefined “other benefits” line. Unlike Vodacom, MTN does not explicitly name personal security as a cost or restate prior years to reflect such spending, leaving the exact nature of those benefits opaque to shareholders.
Comparison of executive protection disclosures
| Company | Disclosure Approach | Transparency Level |
|---|---|---|
| Vodacom | Restated figures to reflect Sars ruling | Moderate (bundled) |
| MTN | Undisclosed/Bundled in “other” | Low |
How do South African standards compare to global practices?
South African firms operate under different reporting requirements than their US counterparts. In the United States, the Securities and Exchange Commission (SEC) mandates the quantification of any executive perk exceeding $25,000 or 10% of total benefits. According to recent data, roughly 25% of S&P 500 CEOs receive security benefits, with some companies spending over $1-million annually. By comparison, Vodacom’s roughly $470,000 spend for Joosub is considered high by S&P 500 standards, though it remains significantly lower than the extreme security budgets seen at major US tech firms like Meta Platforms.
When analyzing integrated reports, always check for “restated” figures in the notes. These often contain critical information about tax rulings or accounting changes that were not present in previous years’ summaries.
Frequently Asked Questions
Are South African companies required to disclose security costs?
No. According to the report, neither the JSE listings requirements, the Companies Act, nor the King codes compel companies to publish a standalone figure for executive security protection.
Why did Vodacom restate its FY2025 financial report?
Vodacom restated the figures after the South African Revenue Service (Sars) issued a ruling confirming that executive security arrangements constitute a taxable fringe benefit. The company updated its disclosures to ensure comparability and consistency.
Does CFO Raisibe Morathi also receive security benefits?
Yes. Her FY2025 “other” benefits line was restated from R6 365 to R1.05-million, indicating a security component of approximately R1-million. Her FY2026 figure of R855 963 suggests a slightly lower expenditure than the previous year.
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