Public Enterprises Minister Lynne Brown has approved a below inflation remuneration increase for Eskom’s non-executive directors‚ but has decided to defer the decision regarding increases for the electricity parastal’s executives.
Non-executive directors will receive a 4.6% increase.
Speaking at Eskom’s annual general meeting (AGM) on Friday ahead of next Tuesday’s announcement of the company’s financial results for the year ended 31 March 2016‚ Board chairperson Dr Baldwin Ngubane said the executive remuneration strategy was reviewed to align to the DPE Remuneration Guidelines and best practice.
The balance between fixed and variable remuneration (short- and long-term incentives) is reviewed annually.
“Our approach to remuneration and benefits is designed to attract and retain skilled‚ high-performing executives and employees. We aim to remain competitive to attract and retain key skills‚ by providing market-related remuneration structures‚ benefits and conditions of service‚” he said.
Ngubane added that: “International and local benchmarks are considered in determining executive remuneration‚ to ensure that executive packages are aligned to those offered by companies of similar stature. Market factors are considered‚ to keep remuneration at levels that will assist us in retaining key leadership skills. We are mindful of the responsibilities and risks that directors and executives bear‚ given their broad accountability.”
Remuneration of non-executive directors at Eskom was benchmarked against companies of a similar size‚ and was in line with guidelines issued by DPE. Remuneration proposals from the People and Governance Committee were submitted to the Board‚ which made recommendations to the shareholder. Non-executive directors received a fixed monthly fee and were reimbursed for out-of-pocket incurred in fulfilling their duties
Ngubane said employees were remunerated in accordance with their job grade‚ and at least at the minimum of the applicable salary scale.
“We guarantee internal equity through defensible differentials in pay and benefits‚ and resolve unjustifiable race- and gender-based income differentials if they arise.”
Brown commended the Eskom Board and executive management team for stabilising the country’s national power grid‚ and stressed that she expected Eskom to continue to play its role in ensuring energy supply as a backbone to economic growth.
She noted that the power system had remained stable due to the rigorous maintenance programme that Eskom had put in place‚ resulting in no load shedding being implemented for over 10 months.
Two non-executive directors did not make themselves available for reappointment. Ngubane thanked Ms Viroshini Naidoo and Ms Nazia Carrim for their contribution and noted that their presence would be missed as their term of appointment ended on Friday.
Minister defers increases for Eskom executives
Public Enterprises Minister Lynne Brown has approved a below inflation remuneration increase for Eskom’s non-executive directors‚ but has decided to defer the decision regarding increases for the electricity parastal’s executives.
Non-executive directors will receive a 4.6% increase.
Speaking at Eskom’s annual general meeting (AGM) on Friday ahead of next Tuesday’s announcement of the company’s financial results for the year ended 31 March 2016‚ Board chairperson Dr Baldwin Ngubane said the executive remuneration strategy was reviewed to align to the DPE Remuneration Guidelines and best practice.
The balance between fixed and variable remuneration (short- and long-term incentives) is reviewed annually.
“Our approach to remuneration and benefits is designed to attract and retain skilled‚ high-performing executives and employees. We aim to remain competitive to attract and retain key skills‚ by providing market-related remuneration structures‚ benefits and conditions of service‚” he said.
Ngubane added that: “International and local benchmarks are considered in determining executive remuneration‚ to ensure that executive packages are aligned to those offered by companies of similar stature. Market factors are considered‚ to keep remuneration at levels that will assist us in retaining key leadership skills. We are mindful of the responsibilities and risks that directors and executives bear‚ given their broad accountability.”
Remuneration of non-executive directors at Eskom was benchmarked against companies of a similar size‚ and was in line with guidelines issued by DPE. Remuneration proposals from the People and Governance Committee were submitted to the Board‚ which made recommendations to the shareholder. Non-executive directors received a fixed monthly fee and were reimbursed for out-of-pocket incurred in fulfilling their duties
Ngubane said employees were remunerated in accordance with their job grade‚ and at least at the minimum of the applicable salary scale.
“We guarantee internal equity through defensible differentials in pay and benefits‚ and resolve unjustifiable race- and gender-based income differentials if they arise.”
Brown commended the Eskom Board and executive management team for stabilising the country’s national power grid‚ and stressed that she expected Eskom to continue to play its role in ensuring energy supply as a backbone to economic growth.
She noted that the power system had remained stable due to the rigorous maintenance programme that Eskom had put in place‚ resulting in no load shedding being implemented for over 10 months.
Two non-executive directors did not make themselves available for reappointment. Ngubane thanked Ms Viroshini Naidoo and Ms Nazia Carrim for their contribution and noted that their presence would be missed as their term of appointment ended on Friday.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos