DEPARTMENT: PUBLIC ENTERPRISES
REPUBLIC OF SOUTH AFRICA
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION NO.: 1374
DATE OF PUBLICATION: 18 September 2009
Mr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:
Whether she will take steps to cancel the increase and bonus of a certain
person (name furnished); if not, why did he receive a 26% salary increase
(a) as opposed to the 10.5% awarded to the ordinary workers at Eskom and
(b) after the R9,7 billion loss suffered by Eskom in the 2008-09 financial
year; if so, what are the relevant details? NW1730E
REPLY
(a)(b) The Boards of SOE are responsible for the remuneration of
executives; therefore, the Minister of Public Enterprises does not have the
prerogative to increase or to cancel these bonuses. The Department of
Public Enterprises only provides a guideline for Remuneration of Executive
Directors as well as the implementation of Long âTerm Incentive Schemes for
Senior Executives
Eskomâs CEO was an internal appointee and his contract of employment
entered into in 2007, provided for periodic adjustments to bring him to the
median of the Remuneration Guidelines for Chief Executive Officers.
These adjustments over a 3 year period were effected as follows:
⢠In October 2007, the annual salary increase was 7% and this was
similar to the percentage increase awarded to all F-band employees
during the October 2007 annual increase period.
⢠In April 2008, an adjustment of 15.31% was effected to his salary
bringing it to the median of the market for Chief Executives.
⢠In October 2008, his annual salary increase was 8.84%.
⢠In October 2009, the annual increases for senior management
including the CEO were approved at 6.5% across the board.