Fin24

Minister unveils Eskom chiefs' pay

2011-08-15 16:03

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.

Comments
  • Weisskopf - 2011-08-15 16:21

    The problem here is rather the employers - it is simple, a proper Bonus system looks like: KPI 1 (70% weighting) = 99.9% service (electricity) delivery KPI 2 (30% weighting)Financial Performance (excluding annual tarrif increases to Joe Blogs). For that piece of consulting Eskom can pay me R2m, thank you.

  • scud - 2011-08-15 16:21

    I wonder-would they earn more if they were doing a good job?

  • Stu - 2011-08-15 16:23

    That is R15000 a day! No bloody way can this be accepted and if they say that is 'cause it is the international norm then kick their lard-arses overseas, this just hurts and the gravy train has to stop soon.

  • Nesomaniac - 2011-08-15 16:27

    That they were given this over-the-top payment doesn't necessarily mean they EARNED it!

  • JohnnyBB - 2011-08-15 16:28

    ...the "millions" are always available for the Eskom Chiefs...!! ...but for the ordinary workers not... ....7% increase for the ordinary workers.......?? ...I hope the Eskom workers go on strike...!! ...for very long...!!!

  • Snucky@24.com - 2011-08-15 16:37

    These bonus payments are ridiculous - for what - they didn't perform..If they were in my Company based on the criteria we use, they would have received nothing.

  • awwgee - 2011-08-15 16:37

    Why on earth should they receive these kind of packages anyway? While they reun a multimillion rand operation, it is an extention of the government, and I am sure there are plenty people out there who could do this job at a fraction of the cost! We seem to have developed a parallel government system which is killing this country. Too many of these cadres are milking this beautiful country of ours!

  • Debra-Lee Boulter - 2011-08-15 16:39

    This is what Nationalization will look like!! It is a frigging Joke!!!

  • Sbali - 2011-08-15 16:39

    So no comments from the pink gat sniffers if it was a black person the wolf would be crying foul!!!

  • the mc - 2011-08-15 16:40

    accountabilty is vital ek se

  • DeonL - 2011-08-15 16:41

    The Gravy train stops for no one.

  • Boutds - 2011-08-15 16:46

    Who, still needs proof that the proposed NHI is not just another enrichment tool?

  • beicime - 2011-08-15 16:46

    What so exceptional have they done?

  • Boutds - 2011-08-15 16:48

    Can you imagine when they start taking the mines and banks for a ride! Party time!! Rewarding mediocrity.

  • saburger - 2011-08-15 16:49

    What did management earn in the good old apartheid years when Eskom was an efficient organisation?

  • corro51 - 2011-08-15 16:51

    I'll bet they don't live as well as Malema though.

  • Dunloos - 2011-08-15 16:52

    ja, this explains a lot

  • alfred - 2011-08-15 16:54

    How odd - I am not alfred and yet News24 thinks I am. This may be a bug in your system!

  • alfred - 2011-08-15 16:55

    What more could we expect!

  • alfred - 2011-08-15 16:57

    envy them...

  • alfred - 2011-08-15 16:59

    Sick!

  • Jay - 2011-08-15 17:00

    at least now we know why we pay the ridiculous electricity tarrifs,,,,to feed these fat cats

  • alfred - 2011-08-15 17:01

    Nice

  • Ann Wilson - 2011-08-15 17:13

    An absolute disgrace, whilst most South Africans are struggling to make ends meet due to extortionate price of electricity and stealth taxes such as toll fees. They are not even doing a good job & don't deserve it. No wonder the unions & workers are striking.

  • BigMoose - 2011-08-15 17:14

    Outrageous!!!

  • Lembede - 2011-08-15 17:15

    Gigaba, a former ANCYL president: so humble and yet so firm in leadership. Unlike the current crop of YL leaders, yours was directed and mandated by the seniors. Good Luck, Gman.

  • M - 2011-08-15 17:15

    I sincerely hope that these two men will be the first to have 3% deducted from this money as mooted by Pierre De Vos as a wealth tax.

  • De_La_Rey - 2011-08-15 17:27

    Its just wonderful being a South African. I'm feeling so much pain from being shafted left right and centre.

  • glello1 - 2011-08-15 17:44

    HORRIFIED WHEN PEOPLE HAVE TO FORK OUT FOR HUGE TARIFF INCREASES. THIS BLATANT LACK OF CONCERN FOR CITIZENS OF THIS COUNTRY IS TOTALLY UNACCEPTABLE. INSTEAD OF WORKERS STRIKING FOR MORE WAGES WE NEED TO STRIKE FOR CEO'S ETC TO GET LOWER SALARIES WHICH WILL AVOID THESE HUGE INCREASES TO FIT THEIR WAGE BILL AND LAUGHABLE BONUSES FOR W H A T. WHAT COULD YOU POSSIBLY SPEND ALL THIS MONEY ON.. WHEN 70% OF SOUTH AFRICANS LIVE BELOW THE POVERTY LINE BUT MUST STILL PAY HIGH ELECTRICITY BILLS. THIS BEHAVIOUR EQUALS HIGHEST ABUSE OF HUMAN RIGHTS.

  • kgalalelo.malesele - 2011-08-15 18:15

    very sad

  • Steve Wonderboy - 2011-08-15 18:19

    And yet people have to fight for a 10% increase???

  • gatvol4corru - 2011-08-15 18:55

    What!? NO outcry from the unions or ANC? Aaahh,load the pockets comrades. Tomorrow we blame the colonialists

      Jay - 2011-08-16 09:09

      well the the top two highest paid CEOs are white, as i am sure your comment is insunuating that the CEOs are greedy black politicians,,,go on to the Eskom website,,,,,i dont know why you rush to politcise every article when CEOs have been paying themselves ridiculous salaries for over 40years

  • Delta Roger - 2011-08-15 19:30

    Those who voted that Municipal employees are making unrealistic pay demands,comment on these hefty bonuses. SAAMU and IMATU, bring the country to its knees.

  • piet.strydom - 2011-08-15 20:14

    An executive manager's bonus MUST in all circumstances be subject to profitability. It is ludicrous to set it up any other way...

  • JadedJay - 2011-08-15 20:26

    Shameful...more than many CEOs in private enterprizes. What the hell are these multiple bonuses?

  • Enough - 2011-08-15 20:41

    The problem here is rather the employers - it is simple, a proper Bonus system looks like: KPI 1 (70% weighting) = 99.9% service (electricity) delivery KPI 2 (30% weighting)Financial Performance (excluding annual tarrif increases to Joe Blogs). For that piece of consulting Eskom can pay me R2m, thank you.

  • george60 - 2011-08-15 20:57

    What are the motivations to qualify for such bonus in ANC goverment, parastatals or BEE positions other then be lucky to have one of these positions. In other words it comes with the job, no stress nor sweat? Well is not what you know is who you know? May as well close ALL the education institutions, incompetence rules! From cow-herd to presidenta, our own mr Jackal and mr Hide?.

  • cgtours - 2011-08-15 22:24

    There should be NO Bonujsses what for? They are getting ridiculous salaries and they casnnot even run the Companies.! Stop it now and bring down the cost of electriccity!

  • ihatum - 2011-08-16 08:41

    Someone please define for me what a bonus is.

  • Madelane - 2011-08-16 10:55

    Earn? What nonsense. Paid this amount of money is the correct term all no doubt inspired by the profiteering food industry, medical industry and financial industry not to mention the greed of the politicians. Will this self serving greed ever end?

  • Graeme - 2011-08-17 14:01

    Now how do I explain to my employees that bonusses happen when everyone achieves targets to help the company make money and survive...?

  • bheki.dingiswayo - 2011-08-17 14:40

    I agree bonuses should not be paid when services or companies are not doing well. The bonus paid to Brian is justified in that after he resume the office power outage we reduced, stockpile holdings at power station kept at 42 day, throughout the winter last year and this year we did not have load shedding. Bonus paid to Paul is also justified- he came at the time when Eskom need funds for the new power stations and he has done a lot in getting loans/ selling of bonds so that the build programe could continue. We should bear in mind that not all of us can do the jobs they are doing. It looks very easy at the distance but try it then you will know.

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