Brett and Mark Levy, Co-CEOs of Blu Label Unlimited, have seen a significant boost in their remuneration for the 2025 financial year. Their total compensation increased by nearly 80%, rising from R20.8 million in 2024 to R37.4 million each. This dramatic jump is largely attributed to a surge in their short-term and long-term incentive packages, reflecting Blu Label’s improved performance during the year.
The brothers’ fixed remuneration saw a modest 6% increase, rising from R11.7 million to R12.4 million. However, their short-term incentive bonuses saw a far more substantial jump of 128%, from R6.6 million in 2024 to R15.2 million in 2025. Even more notable was the growth in their long-term incentives, which are linked to Blu Label’s conditional share plan. This increased by an impressive 296%, from R2.5 million to R9.8 million each.
Performance Metrics Behind the Pay Increase
The Co-CEOs’ incentive payments are tied to a combination of individual performance targets and broader company performance metrics. To qualify for their short-term incentives, the Levys were evaluated on several key performance indicators (KPIs), including company EBITDA (40%), core headline earnings (40%), and individual goals (20%).
Long-term incentives are determined based on additional criteria such as growth in headline earnings per share, shareholder returns, return on capital employed, and various environmental, social, and governance (ESG) targets.
A Blockbuster Year for Blu Label
The Levys’ pay hike comes amid a dramatic turnaround for Blu Label, driven by its share price surge. From June 2024 to May 2025, Blu Label’s share price skyrocketed by over 175%, rising from R4.30 per share to R11.86. This significant price increase attracted investors, particularly those interested in the company’s plans to revamp Cell C, its telecommunications subsidiary.
However, while Blu Label’s share price growth has been impressive, its overall financial performance remains inconsistent. Since 2017, the company has seen a sharp decline in revenue, falling from R27 billion to just over R14 billion in 2024. Its net income also dropped significantly over the same period, from R4.6 billion in 2017 to R2.48 billion in 2024. Despite these challenges, the company’s 2024 net income represented a significant recovery from the previous year’s figure of just R647 million.
Blu Label’s Troubled History with Cell C
Blu Label’s financial trajectory has been heavily influenced by its involvement with Cell C, a mobile network operator it acquired a 45% stake in for R5.5 billion in 2017. Following the acquisition, Blu Label’s share price took a sharp downturn, with the company’s value dropping by 90% in just three years. Cell C’s declining performance and technical insolvency led to significant financial write-offs, culminating in Blu Label impairing its investment in Cell C to zero in 2019.
Despite the poor investment decision, Blu Label was unable to abandon Cell C completely, as the mobile operator accounted for approximately 25% of the company’s total profits from airtime sales. Thus, Blu Label continued its efforts to stabilize and turn around Cell C.
The Cell C Turnaround Strategy
In 2022, Blu Label announced a new turnaround strategy for Cell C, which included significant restructuring efforts and the recapitalization of the company. This strategy involved a R1.46 billion loan to Cell C, which helped the operator repay its creditors, though the creditors received only 20% of their original claims.
One of the key changes implemented was Cell C’s shift to a capital-light model, where it outsourced its radio network infrastructure to industry giants Vodacom and MTN. This strategic move allowed the mobile operator to reduce costs while improving its margin efficiency.
Cell C also saw a management overhaul, with former Vodacom executive Jorge Mendes taking over as CEO. Under his leadership, the company streamlined its operations, reducing its workforce to fewer than 900 full-time employees. Cell C has also focused on expanding its Mobile Virtual Network Operator (MVNO) offerings, establishing strong partnerships with major financial institutions like Capitec and FNB, as well as with the insurance giant Old Mutual.
Mendes believes that Cell C’s MVNO business model offers better margins than its competitors’ direct-to-consumer approach, positioning the company to compete effectively without the heavy capital expenditures that typically burden larger operators. The MVNO strategy also allows Cell C to work with multiple network providers—MTN and Vodacom—giving it flexibility in providing customers with the best available connectivity options.
A Glimmer of Optimism for Blu Label and Cell C
As Blu Label’s share price soared in 2025, the company also revealed that it was considering the possibility of listing Cell C separately on the Johannesburg Stock Exchange (JSE). This move would mark a new chapter in Cell C’s transformation and could further bolster investor confidence in Blu Label’s future.
For now, the Levys are reaping the rewards of their leadership amid a year of strong stock market performance, even as Blu Label continues to navigate the complexities of its relationship with Cell C. The question remains whether this positive momentum can be sustained long-term, especially given the company’s inconsistent financial track record.
As Blu Label navigates its ongoing restructuring and recovery efforts with Cell C, the Levys’ substantial pay increase reflects both the company’s improved stock performance and the ambitious turnaround strategies currently in motion.
Main Image: Billionaires.Africa
