Who earns “millions” and “billions” at Kazakhtelecom?

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JSC Kazakhtelecom’s employees generate 525 billion tenge in revenue per year for the company, but at the same time they rally for increase in salary.

Who earns “millions” and “billions” at Kazakhtelecom?

According to the integrated annual report of the national company in 2020 the monthly income of JSC Kazakhtelecom per employee averaged 1.7 million tenge. The number of workers at that time stood at 25,155. On average, each employee generated for the company approximately 20.9 million tenge per year. In total, the staff replenished the annual budget of the company with 525 billion tenge.

The figures clearly demonstrate how the telecommunications giant value human resources. The company's expenses on the payroll in 2020 hardly exceeded 100 billion tenge. 89 billion tenge was paid to the staff as salaries, 1.8 billion tenge was paid as remuneration, and 8.6 billion tenge was spent on wage fund.

The document emphasizes that the company implemented a system whereby wages are set individually depending on the efficiency of workers. Sounds fair, but in fact, not everything goes smoothly. Specialists of the technical department at Kazakhtelecom rallied demanding higher pay.

According to the employees who protested in Almaty on January 31, the average of their monthly salary was 110, 000 tenge. Compared to the salaries of top-level management their salaries are significantly lower. Annual fixed remuneration of 4 independent directors in 2020 was approximately 72 million tenge.

Directors with foreign citizenship Buyanov Alexey Nikolaevich and Garrett Martin Johnston were paid $45,000 each. Directors with Kazakhstan citizenship Zaika Dmitry Alexandrovich and Naizabekov Timur Kurmangazievich were paid 16,650,000 tenge respectively. In addition they were paid remuneration for participation in in-person meetings of the board of directors committee. The rate for non-residents of the Republic of Kazakhstan was fixed at $ 500, for residents of the Republic of Kazakhstan was fixed at 185 000 tenge.

Source: corporate website of JSC Kazakhtelecom

In addition to expenses on the payroll and remuneration, Kazakhtelecom annually pays dividends to shareholders. The funds are allocated through the net profit.

The controlling interest (52%) of Kazakhtelecom belongs to the FNP Samruk-Kazyna JSC. The second major owner (24.9%) is Skyline Investment Company S. A. which belongs to Kairat Satybaldy, the nephew of the ex-president of the Republic of Kazakhstan, according to media reports. This company is registered in Luxembourg.

On April 30, 2021 shareholders of  the company decided to allocate 30% of the consolidated net income amounting to 63,493,359,000 tenge for the payment of dividends on common shares. Dividend rate per security was approved in the amount of 1730.88 tenge. Dividends were paid from May 18 to June 3, 2021.

5,570,668 out of  10,922,876 securities belong to FNP Samruk-Kazyna JSC. 2,671,481 securities belong to Skyline Investment Company S. A. Nominal holder THE BANK OF NEW YORK MELLON DRS holds 1,046,150 shares. Shareholders having a stake of less than 5% are the owners of 1,634,577 shares.

According  interim consolidated financial statements of Kazakhtelecom JSC for the six months of last year (2021), by the end of 2020, the national company paid dividends of 18.53 billion tenge to the shareholders of the parent company, 4.3 billion tenge to Non–Controlling shareholders. The indicators, by the way, are twice as high as the values of the previous year.

According to the interim consolidated financial statements for six months of last year, by the end of 2020 Kazakhtelecom paid dividends of 18.53 billion tenge to the  of the parent company and 4.3 billion tenge to non-controlling shareholders. This indicators are twice as high as the values of the previous year.

 

Source: Interim consolidated financial report as at June 30, 2021