Fin24

Eskom boss not ashamed of bonus

2011-08-26 07:30

Cape Town - Eskom chief executive Brian Dames has said he is not ashamed of the R2.1m bonus he received last year.

Responding to a question about it at an Eskom presentation on essential maintenance work which could impact power supply in coming months, he said he did not think he needed to feel guilty about the bonus.

Bonuses such as these are to be expected, since Eskom is the country’s biggest company and has to ensure that the country’s lights are kept on. The bonuses are moreover less than 1% of those paid to top management in the private sector, he said.

Eskom’s executive directors are keenly aware of the situation in the country and of the remuneration gap between top executives and workers. Dames explained that the directors were also very aware of their performance targets in keeping the lights burning while bringing about energy efficiency.

Public Enterprises Minister Malusi Gigaba pointed out that Dames had not awarded himself the bonus, and still did not receive a chief executive’s salary. He still merely received the supplementary allowance he had received as Eskom’s acting CEO.

Gigaba said the remuneration of chief executives in the public sector was to be discussed by an inter-ministerial task team on which both he and Finance Minister Pravin Gordhan served.

The minister said a provisional report on the remuneration of heads of state institutions would probably be submitted to cabinet in December.

When asked about the R63m that Transnet’s top management had received during the same period, Gigaba said these long- and short-term bonuses had had to be paid as they had already been budgeted for.

The framework for remuneration of heads of state institutions will serve as the reference point for future salary structures.
 
- Sake24

For business news in Afrikaans, go to www.sake24.com.

Comments
  • Bradley Pandy - 2011-08-26 13:15

    He should be ashamed. Eskom pleads poverty and needs to up all of our tariffs due to electricity shortages and problems yet in the same breath they justify this kind of bonus to one individual. This is just another indication of the mismanagement by incompetence, permeating this country. Everyday we hear about the poor masses and poverty and the economic problems that justifies the governing bodies putting up tax and implementing road tax and higher rates etc. yet one person gets 2.1 million bonus. Laughable!

      kamo - 2011-10-13 09:00

      Leaving the poverty and the poor masses out as they are sound arguements and they are fustrating. Honestly, looking at the market and what top executives earn out there, Eskom's bonuses are indeed laughable. I feel that we are attacking people who are trying their best to manage a system that we have found in place. Sacrifices and the stresses that these people go through for the benefit of our future generations should be something we look at as well. I really am greatful that my parents are not these big shots. I would have my parents as teaches any day, so that I can see them on a daily basis.

  • Monkey Man - 2011-10-11 15:44

    Now I know where my monthly electricity bill disappears to...sad days...

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