State-owned power utility 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 3 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.
This was up from his R8.5 million salary in 2013.
On Wednesday, 20 August, it was announced that current director general of Public Enterprises, Tshediso Matona, would succeed Dames in the role.
Financial director, Tsholofelo Molefe, received pay totalling R3.2 million, and former financial director Paul O’Flaherty took home R5.9 million.
In June, Eskom reported a net profit of R7.1 billion for the year ended March 2014, up from R5.2 billion in the previous year.
However, earnings were significantly less than the R12.2 billion reported for the six months ended 30 September 2013.
Overlayed, this is the picture of Eskom’s CEO’s pay versus the company’s reported profits since 2002.
Despite the reported profit, however, Eskom is in a deep financial crisis.
Municipalities around the country owed Eskom R10.8 billion at the end of June, according to Co-operative Governance Minister Pravin Gordhan – and according to Public Enterprises Minister Lynne Brown, the group needs to find R250 billion or it could get cut to junk credit status.
According to Reuters, the utility is in talks with a number of banks for a secured syndicated loan of up to $1 billion.
Nersa also recently approved the regulatory clearing account (RCA) for Eskom, allowing it to recover R7.8 billion in revenue – a measure which could see electricity prices climb by as much as 14% in 2015.
Eskom initially sought approval to recover R18.3 billion.
Eskom declared four power system emergencies during the year. On 6 March 2014, after having declared an emergency, Eskom had no choice but to implement load shedding for the first time since 2008, while to-date, the power situation on a national level remains strained.