• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Minister unveils Eskom chiefs' pay

Aug 15 2011 16:03 Sapa

Related Articles

Gigaba: No change to Transnet board

Gigaba: Rethink needed on Denel

Eskom still probing damaged turbine

Eskom faces looming skills shortage

Union: Eskom shuts workers out

Eskom to stay out of bond market

Cape Town - Eskom CEO Brian Dames and financial director Paul O'Flaherty earned over R10m between them in 2010/11, Public Enterprises Minister Malusi Gigaba said on Monday.

In written reply to a parliamentary question by the Democratic Alliance, he said Dames earned a salary of R3.399m, a short-term bonus of R1.309m, a long-term bonus of R821 000, and "other payments" of R212 000 for a total cost to company of R5.741m.

O'Flaherty earned a salary of R3.512m and a short-term bonus of R1.407m for a total cost to company of R4.919m, he said.

In a statement later, DA spokesperson Pieter van Dalen said the payments were made despite Eskom not being able to guarantee it would have enough electricity-generating capacity through 2016 and ordinary South Africans continued to struggle with significant increases in electricity costs.

This follows a report earlier on Monday about the significant bonuses paid out to Transnet's top management during the 2010/2011 financial year.

The report indicated that Transnet's top management received R63.6m in bonuses on top of their already significant R49.7m salary packages, he said.

"It is in this light that the DA will be delivering a submission to the Presidential State-Owned Enterprises (SOE) Review Committee."

The problems at SOEs were manifold and complex but one of the most basic structural problems remained the clear lack of accountability, feedback, and oversight.

Those SOEs that continued to perform below par should not be allowed to pay out bonuses to executives.

Even more importantly, when executives failed to perform or when they acted inappropriately, action needed to be taken to resolve the situation, he said.

Parastatals such as Eskom and Transnet were of vital strategic importance in the economy and their executives could not be allowed to continually deliver mediocre outcomes while they received massive "performance" bonuses.

The payout of bonuses should be clearly linked to improved outcomes at these parastatals, such as significant increases in transportation volumes at Transnet or an improvement in the electricity supply situation at Eskom.
transnet  |  eskom  |  malusi gigaba  |  parastatals



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote