Eskom on Thursday defended the pay and bonuses for its executives, including CEO Brian Dames. The public utility said in a statement that Dames’s salary increase was only 10,6% and that his reported 91% increase was due to “performance bonuses” from the previous two years.
“The 2010 bonus payments are actually for the 2009 and 2010 financial years paid in the 2010 financial year,” read a statement. “The 2009 bonuses were deferred on condition of achieving cost savings of R22bn. This target was achieved, and payment was therefore made in 2010.”
Eskom said the deferment of bonuses should be taken into account when calculating increases, and defended its method of awarding bonuses.
“The executive committee takes independent professional advice to ensure that bonuses are determined in line with companies of a similar size and industry, follow best practice guidelines and are appropriate for the individual position and level of achievement.”
Eskom was responding to media reports that its executives had been awarded salaries and bonuses that increased their remuneration between 25% and 91%.
Unions are currently demanding a 9% wage increase and larger housing allowances for their workers at Eskom. — Sapa