Public Enterprises Minister Lynne Brown is holding off remuneration increases for Eskom’s executives, but she approved a 4.6% increase for non-executives.
“Public Enterprises Minister Lynne Brown … approved a below inflation increase of 4.6% in non-executive remunerations for the company, and has decided to defer the decision regarding remuneration increases for Eskom’s executives,” the power utility said in statement.
Brown commended the Eskom board and executive management team for stabilising the country’s national power grid.
She noted that the power system has remained stable due to the rigorous maintenance programme that Eskom has put in place, resulting in no load shedding being implemented for over 10 months.
Eskom is expected to announce its financial results for the year ended 31 March 2016 on Tuesday.
“Our approach to remuneration and benefits is designed to attract and retain skilled, high-performing executives and employees,” said Eskom chairperson Baldwin Ngubane.
“We aim to remain competitive to attract and retain key skills, by providing market-related remuneration structures, benefits and conditions of service.”
He 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.
No futher details were provided about the decision to defer pay hikes for Eskom’s executives.
Eskom spokesperson Khulu Phasiwe was not available for comment.