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Gigaba plans to curb executive pay

By Caiphus Kgosana | Mar 14, 2012 | COMMENTS [ 42 ]

"Have you been able to meet your key performance indicators? Do we have a reason to incentivise you?"

PUBLIC Enterprises Minister Malusi Gigaba plans to clamp down on the excessive payment of senior executives and board members of state-owned enterprises (SOEs).

Gigaba told Parliament's standing committee on public accounts (Scopa) yesterday that he had ordered that chief executives and board members of all SOEs that fall under his department do not receive increases until a proper remuneration policy is in place.

"Remuneration generally of executives is quite high and it does not contribute to bridging the inequality gaps between the highest paid and the lowest paid," Gigaba said.

Members of the public accounts committee had taken issue with some board members at transport entity Transnet who sit on the boards of numerous other companies.

Gigaba said he planned to come up with a policy to regulate the remuneration of executive and non-executive directors of SOEs.

"The decision we have taken is not to increase the remuneration of non-executive directors until we finalise our views on these.

"The same applies to the chief executives of the companies," he said.

Gigaba took issue with the R10-million that was paid to Transnet Freight Rail chief executive Siyabonga Gama as incentives and bonuses for a period during which he was sitting at home.

Gama was suspended in September 2009 and fired in June 2010.

He was reinstated last year in February and was paid R10-million without doing any work.

The minister said given the Gama debacle, the issue of short-term and long-term incentives paid to executives of SOEs needed to be revisited.

"The fact that you were at work 365 days minus 21 days of leave doesn't entitle you to a bonus.

"Have you been able to meet your KPIs (key performance indicators)? Did you deliver on the KPIs? Do we have a reason to incentivise you?" he asked.

Gigaba said he was also reviewing the composition of boards of SOEs to ensure that they are the right size and are able to attract people with the proper skills to help run these entities.

COMMENTS [ 42 ]

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Thanks Gigabe for taking action, those who say this is just talk, maybe they should re-read the article as it clearly quotes teh minister saying "The decision we have taken is not to increase the remuneration of non-executive directors until we finalise our views on these.

"The same applies to the chief executives of the companies,"

So what do you mean its talk and you want action? you must go back to school and demand your change man.

Mar 14, 2012 3:30 | 0 replies

Money corrupts people, this world needs to end money created by AMERICA.
It is one big scam

Mar 14, 2012 10:18 | 0 replies

I like this...hopefully it will br implemented - we have a lot of executives who are getting fat bonuses even though their companies are not meeting the required performances

Mar 14, 2012 10:2 | 0 replies

Eeeee Comrade! I Have this post for you....
.................................................................................
Job Spec: Sit and do nothing
Salary: 10mil
Bonus: 18% of annual salary
Benefits: Cell phone (R5000), Car, House, travell, Entertainment, holiday packages.

Suitable candidates:
Anyone who say "My Chief"
No knowledge of what they are talking about, but still elaborates on issues.

Mar 14, 2012 10:2 | 0 replies

clamp down on the excessive payment of senior executives and board members of state-owned enterprises (SOEs).
***************************************************************************************************
Not condoning what senior executives do but @Gigaba dont you think you should be examplary. Stop your extravagance by not following what is in the Ministereal Handbook and then you can start dictating, as it seems like ANC is resorting to draconian laws

Mar 14, 2012 10:1 | 0 replies

I agree with the Minister here. The executive of these SOE's pay themselves huge bonuses and the employees who deserve much for their effort get nothing at the end of the financial year.

Don't get me wrong but am working for one of the SOE and it is just like that and that need to be administered.

Mar 14, 2012 9:48 | 0 replies

talk, talk talk, talk, talk........DO IT

Mar 14, 2012 9:42 | 0 replies

Viva comrade MK- (Malusi Kikaba)! You're a force to be reckoned now and FOREVER. You're a real proponent of corporate governance. You are cementing effective and proper leadership through the principle of moral foundation. Some of us value your objective opinion and will like to see you growing in the ranks of the movement. You are really not a toxic leader to this country and have the interest of this country at heart. I wish we could all see this and avoid being hypocrites when someone is doing the right thing for the benefit of everyone. Go comrade Go, you used to be the president of the youth league and why not aspire to be the future president of this country. You have all what it takes and criticism will build you and make you become a good leader who is NOT AFRAID TO MAKE UNPOPULAR DECISIONS to the benefit of this country. You're a custodian of corporate governance, hence they have given you the responsibility to run such a big portfolio that our economy is dependent on. Adherence to the Key Performance Indicators should be a rule and guiding principles to all executives because we cannot continue making SOE's milking cows. VIVA COMRADE MK!!!!!!!!!!!!!!!!!!!

Mar 14, 2012 9:38 | 0 replies

Good! We know anything you pay for an incompetent person is too much.

No worries ANC, we note how you have been conducting your business. Duly noted!

Mar 14, 2012 9:13 | 0 replies

For every R1 that the government spends on salaries, it spends 20c on service delivery.

Mar 14, 2012 10:25 | 0 replies

Only in the government could you get a performance bonus for not being at work. If Transnet 'performed' so well without him then its pretty damn obvious that he is not worth his salary to start with.

I also can't figure out how one man can sit on that many boards and still run a business. There is no way that someone can give 100% of their attention when they are spread out that thinly. Some days I wonder if we only have 20 families in SA as there are only about 20 families who ever seem to be on these boards or getting tenders

Mar 14, 2012 10:26 | 0 replies