Gigaba plans to curb executive pay
"Have you been able to meet your key performance indicators? Do we have a reason to incentivise you?"
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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.
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Comments
maneater
R10 mil for sitting at home? jerrrrrr!!!!!!!Report Abuse
BaleliM
10M for doing nothing? Then how much do they pay for doing something?Report Abuse
Phunyukabemphethe
SOEs that fall under his department do not receive increases until a proper remuneration policy is in place..........................................................................................................................................................
Melusi Gigaba is a dictator like my uncle Pres Rob
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R18SN
i wish this Gama was my man staying at home woth me and making love then paid R10 m for that. i would then take my 30% share.Report Abuse
TheNewFreedomFighter
As usual the ANC government has got it all wrong - AGAIN. Let's face it, and don't take this as though I support the likes of the R10 mil hand out to the executive, but the real issue here is that the ANC places so much energy in setting and monitoring KPI's for a handful of SOE's, when countless billions of Rand are spend on salaries every month to teachers (and other civil servants) that clearly have failed to deliver even the slightest bit of competence when you take the 2011 matric results into account.Why waste your time on a few tens of millions when you are throwing away billions and in the process also throwing away the futures of hundreds of thousands of children every year?
This ANC government is clueless. Their policies have failed across the borad and they have no real solution to the problems in SA. They dabble here and dabble there as they squabble here and squabble there. They are just like a bunch of cowboys chasing after a heard that has run amok. They focus on one cow but yet 500 others have bolted. Stupid!
On Black Tuesday 2011 the ANC government became a fascist regime.
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maneater
@ TheNewFreedomFighteryou out of order comrade, Mr Gigaba is the minister of state enterprises and he is adressing the issues pertaining to his department. the issue of teachers need to be adressed to the education minister. fact is unless each minister does his bit ( which is what i think mr Gigaba is doing) then we are not going to win.
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Papage
Please guys, let us put money aside and start working, if we all deliver on what we promised, money matters will sort themselves later. we need to work and remove the Anger that is killing us.Report Abuse
MorenaWaPolelo
I think Gigaba has got the point here this executives needs to achieve their KPI's before they can receive the bonuses. Also I think people must take Gigaba serious he does not only say he does!!!Report Abuse
RobinH
WHat's up with this. The following comment was removed. What on earth is offensive in this: "Talk is easy. Just do it!".Report Abuse
DJWinner
Noted......Report Abuse
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