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Blu Label Telecoms Ltd. rewarded its co-chief executives with a combined R74.3 million ($4.3 million) for the year to May 2025 as the company’s bet on reviving mobile-phone operator Cell C paid off in a sharply higher share price.
Brett Levy and Mark Levy each received R37.4 million ($2.16 million), up almost 80% from R20.8 million ($1.2 million) a year earlier, according to the company’s remuneration disclosures cited by MyBroadband. The surge came almost entirely from variable pay — a hallmark of turnarounds that hinge on performance gains.
Incentives, not salaries, fuel the jump
Fixed salaries edged up only 6%, rising to R12.4 million ($717,000) from R11.7 million ($677,000). Bonuses more than doubled to R15.2 million ($880,000) apiece, while long-term incentive awards nearly quadrupled to R9.8 million ($567,000) each.
The payout structure links 20% of bonuses to individual KPIs and 80% to financial metrics — notably normalized EBITDA growth (40%) and core headline earnings (40%). Long-term awards vest against targets for earnings per share, total shareholder return, return on capital employed and ESG goals.
Share surge supports generous rewards
Blu Label’s stock price has rallied more than 175% in the 12 months to May 31, climbing from about R4.30 ($0.25) to R11.86 ($0.69). Investors have responded to management’s effort to reposition Cell C as a capital-light operator, outsourcing network operations to cut fixed costs and focus on services.
The windfall for the Levys mirrors that upswing — though critics warn that market gains can be fleeting in South Africa’s competitive telecom sector, where heavy capital needs and shifting regulation can quickly erode margins.
Governance spotlight on rich pay
Blu Label bought a 45% stake in Cell C for R5.5 billion ($318 million) in 2017 but later wrote down the investment after years of losses.The current management strategy, built around cost control and network partnerships, has revived optimism — and underpinned the rich rewards for top leaders.
Even so, the sharp rise in pay has drawn the eye of governance watchers, who say companies emerging from long restructurings need to tread carefully in balancing incentives and shareholder value.
For now, Blu Label’s board is betting that keeping the Levys heavily exposed to performance metrics aligns them with investors.How long the rebound lasts — and whether the generous incentives prove sustainable — will be tested in the next phase of Cell C’s recovery.
