Public Investment Corporation (PIC), the second-largest stakeholder in MultiChoice after Vivendi, has raised concerns about the company’s practice of appointing board members as consultants. The scrutiny comes after it was revealed that Volkwyn, who served as a consultant for six years, received R10 million (approximately $565,000) for his services. Similarly, former board chairman Imtiaz Patel reportedly earned R20 million (around $1.12 million) in a comparable consulting capacity before resigning in April 2024.
The shareholder has also criticized MultiChoice for allegedly making decisions unilaterally, without adequate communication with its investors. MultiChoice, however, has refuted these allegations, asserting that Volkwyn’s consultancy agreements, including his compensation, were fully disclosed to all shareholders.
In response to the criticisms, MultiChoice has defended its approach by arguing that hiring experienced board members as consultants is more cost-effective than bringing in external professionals. Volkwyn, who was the company’s longest-serving board member and previously its CEO when MultiChoice was part of the Naspers group, exemplifies this rationale.
Volkwyn has now resigned from the board amid accusations of breaching corporate governance standards, just ahead of the company’s Annual General Meeting scheduled for August 28, 2024. By choosing not to seek re-election, Volkwyn aims to sidestep potential controversies and avert a scenario that could overshadow the company’s public image or negatively impact its market position.
