Johannesburg - Public Enterprises Minister Malusi Gigaba has
suspended pay increases for CEOs and board members of parastatals until a
remuneration policy has been put in place, according to The Times newspaper on
"Remuneration generally of executives is quite high and
it doesn't contribute to bridging the inequality gaps between the highest paid
and the lowest paid," Gigaba told parliament's standing committee on
Gigaba reportedly took issue with the R10m paid to Transnet
Freight Rail CEO Siyabonga Gama as incentives and bonuses while he was
Gama was suspended in September 2009 and fired in June 2010.
He was reinstated in February last year.
In the light of the Gama issue, Gigaba said the issue of
incentives paid to executives of state-owned enterprises should be
"We have to find a formula that allows us to be able to
explain with a great degree of comfort the incentives that people get, which
must be linked with performance."
According to The Times, Gigaba said state-owned entities
were battling to compete with the private sector on salaries, making it difficult
for them to attract the best brains.
"The private sector keeps pushing up salaries and puts
pressure on state-owned companies," Gigaba said.
A presidential commission has been set up to review the
remuneration of executives at state-owned companies.