R240 Million Sale: Why Naspers SA CEO Cashed Out Her Shares

A Big Transaction, A Bigger Picture

In corporate South Africa, it’s not every day that an executive cashes out shares worth nearly R240 million, but when they do, people pay attention. That’s exactly what happened on July 30, when Phuthi Mahanyele-Dabengwa, the CEO of Naspers’s South African operations, sold 42 305 shares in the global internet giant.

While headlines scream “R240 million disposal,” the reason behind it is far less dramatic: taxes and lots of them.

What Triggered the Sale?

According to Naspers, the sale was made “to cover taxes and other related costs.” It sounds dry, but it’s a necessary move for executives exercising stock options. Mahanyele-Dabengwa had been awarded these shares between 2020 and 2023, each with different strike prices, the cost she originally paid to acquire them.

Now that she’s cashed out, the capital gain across all tranches adds up to about R150 million, which means the taxman comes knocking. A quick estimate suggests a tax bill of R43 million. So yes, she took home a sizeable chunk,  but SARS got its fair share too.

And while 42 305 shares were sold, another 9 999 shares, worth roughly R55.7 million remain in her pocket. Not a bad day at the office.

More Than Just Numbers: Who Is Phuthi Mahanyele-Dabengwa?

If her name rings a bell, it should. Before joining Naspers in 2019, Mahanyele-Dabengwa built a strong reputation in SA’s business scene. She was the CEO of Shanduka Group, the investment company started by none other than President Cyril Ramaphosa, and later co-founded Sigma Capital.

When she was appointed to lead Naspers’s local operations, it was a big moment, not just for her, but for transformation in a sector still heavily criticised for lacking diversity at the top. She became the face of Naspers’s local footprint, taking on oversight of major platforms like Takealot, Media24, and Property24.

How Demanding Is Her Role, Really?

There’s been chatter about how influential or hands-on her position is. After all, the bigger, bolder moves in the Naspers ecosystem happen through Prosus, its Amsterdam-listed juggernaut. And many of the SA brands under Naspers, like Media24 and Takealot have their own boards and executive teams.

But Mahanyele-Dabengwa’s role isn’t purely operational. She leads Naspers Foundry and Naspers Labs, two important initiatives aimed at sparking local innovation and tackling youth unemployment, a crisis-level issue in SA. Her job is deeply tied to social impact, transformation, and strategic representation.

What’s She Paid?

In the last financial year (ending March), she earned about $2.455 million, roughly R45 million, including:

• R8.8 million in fixed salary and benefits

• R8.7 million in short-term incentives

• R27 million in long-term share appreciation rights

About 80% of her short-term targets aren’t about profits or margins but focus on stakeholder engagement, empowerment, and socio-economic development.

That $5 Million Moonshot

Like Naspers and Prosus Group CEO Fabricio Bloisi, Mahanyele-Dabengwa is also part of an ambitious incentive plan that could see her walk away with a once-off $5 million (around R92 million) if a so-called “moonshot” target is achieved.

That moonshot? Doubling the group’s market cap between mid-2024 and mid-2028, and sustaining it for a year. It’s bold, some might say unrealistic, but it shows the group’s determination to reward outsized performance.

The Real Takeaway

So, did Mahanyele-Dabengwa just pocket R240 million? Not quite. Like most stock option exercises, it’s a mix of gains, taxes, and forward-looking strategy.

But more than that, this story reflects something bigger: the complex, often misunderstood world of executive compensation and how leadership today isn’t just about profit, but about purpose, representation, and impact in a country still wrestling with inequality.

And if Naspers manages to pull off its moonshot? This R240 million sale might look small in hindsight.

{Source: Moneyweb}

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