Eskom cuts bonuses: report

State power utility, Eskom has told its employees that there will be no bonuses paid out in the current financial year.

This is according to a report by the Sunday Times, citing an internal email sent by Eskom head of human resources, Matome Makwela.

In the email, Makwela explained that Eskom had not hit its money saving targets, which was set at R9.8 billion, and that the required availability factor of 77% fell short at 73.3%.

Further, unscheduled maintenance outages were too high at 17%, versus the required 10% goal.

Eskom has been highly criticised for its remuneration policies – specifically the payout of bonuses – amid an ongoing power and financial crisis in the country.

Eskom paid its top executives a total of R60 million in the 2014 financial year, up from R57.4 million the year before.

Over 40% of this amount – R24.4 million – was paid to the group’s top three executive directors.

Former chief executive, Brian Dames, who left the utility at the end of March 2014, took home a pay package of R15.4 million – the highest salary paid by the company in more than a decade.

Executive pay and bonuses are determined by the Eskom board, and are discretionary, which means that top executives may still receive a bonus, according to previous statements from the group.

According to public enterprises minister Lynne Brown, long-term incentive bonuses, however, have not been decided upon or paid at Eskom since April 2012.

More on Eskom

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Eskom cuts bonuses: report