Jim Volkwyn, a Multichoice director who has reportedly earned R10 million ($562,000) in consultancy fees since 2018, has resigned following pushback on the continuation of his contract.
Volkwyn spent 33 years at the pan-African broadcaster and his contract was due to expire in 2028.
“As a result, resolution 2.3 contained in the annual general meeting (AGM) notice for the meeting to be held on Wednesday, 28 August 2024 will be withdrawn and Mr Volkwyn will retire with effect from the same date,” Multichoice said in a statement on Tuesday
On August 22, the Public Investment Corporation (PIC), which holds a 15% stake in Multichoice said it would block Volkwyn’s reelection at the company’s annual general meeting to be held on August 28. Continuing Volkwyn’s contract would be detrimental to the company’s corporate governance principles, the PIC said.
Multichoice said the consultancy contracts were disclosed to shareholders, were lawful in all respects and “the Board at all times ensured compliance with corporate governance requirements.”
Multichoice’s hefty remuneration for executives despite its financial struggles has been under scrutiny from shareholders such as PIC. Former chair Imtiaz Patel, who was retained after the Canal+ deal, was paid around R20 million ($1.1 million) in consultancy fees according to the company’s financial disclosures.
Elias Masilela, the broadcaster’s new chair, said numerous consultancy are currently under review and will likely be terminated. In 2023, the contract of Kgomotso Moroka, another board of directors member, was terminated.