Eskom head received R22,775 million when he resigned and left a mess behind

2014-11-25
Dr Pieter Groenewald

Eskom’s previous chief executive officer, Mr. Brian Dames, who resigned on 31 March 2014, received R22,775 million in compensation for the year in which he resigned. A payment of R5,007 million was paid just for the ending of his contract. He received a back-pay of R1,9 million and a long term incentive of R1,928 million. These payments were revealed by the minister of Public Enterprises, Ms. Lynne Brown, in a reply to a question of Dr. Pieter Groenewald, FF Plus MP in Parliament.

“Brian Dames should repay these additional payments as the lack of performance had taken place under his supervision and direction. Due to his poor management taxpayers must pay extra for the completion of the Medupi and Kusile power plants and now also have to suffer the inconvenience of load-shedding. The minister should also explain why he was paid R5 million, merely because he had resigned.

The annual salary of the CEO of Eskom amounts to R15,367 million and with such a salary the CEO should be an excellent manager. Eskom is an extremely strategic entity and poor management has negative consequences for the economy of South Africa, as we are experiencing at present. It is becoming a disease in South Africa that government fills top positions, which pays huge salaries, with mediocrity and not with excellence, while taxpayers have to foot the bill,” Dr. Pieter Groenewald (MP), the chief spokesperson on Public Enterprises for the Freedom Front Plus says.

 

Contact no.: 083 627 4397 / 083 4195403

 

REPLY OF MINISTER

 

QUESTION FOR WRITTEN REPLY -QUESTION NO.: 2173 -DATE OF PUBLICATION: 31 October 2014 –

2173. Dr P J Groenewald (FF Plus) to ask the Minister of Public Enterprises:

(1) What is the total annual remuneration of the chief executive officer of each entity that reports to her?

(2) Whether she will make a statement on the matter? NW2716E

 

Reply

 

Eskom SOC Ltd

 

The remuneration of the Chief Executive Officer (CEO) of Eskom as with the rest of the Exco members consists of a guaranteed pay, allowances, short-term incentives and long-term incentives. It should be noted that Mr. Brian Dames, previous CEO of Eskom, resigned on 31 March 2014 and his total remuneration for 2013/2014 for the Financial Year was:


Remuneration Element

Amount


Guaranteed pay

R6,031,000.00


Short-term incentives payment

0


Long-term incentives payment

R1,928, 000.00


Other

R7,408,000.00


Back pay increases

R1,900,000.00


Security and operating vehicle expenditure

R501,000.00


Termination payments

R5,007,000.00


Total Cost to Company Per Annum

R15,367,000.00