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<\/a><\/p>\nEskom’s executive remuneration comprises a guaranteed package, other payments (such as personal security, motor vehicle expenses and cellphone costs), as well as short- and long-term incentives only if the qualifying criteria are met.<\/p>\n
No short-term bonuses were paid out, and no new long-term bonuses were awarded, given that none of the group’s conditional targets for those rewards were met.<\/p>\n
Despite this, the average pay for group executives (excluding CEO and CFO) was R3 million for the year, or R1.9 million excluding notice payments.<\/p>\n
A further R6.85 million was paid to non-executive directors, including a R1.6 million payout for chairman, and new acting CEO, Jabu Mabuza.<\/p>\n
Employee pay<\/strong><\/p>\n One of the biggest costs for Eskom, and a major contributing factor to its financial problems, is covering the costs of its bloated workforce.<\/p>\n As at the end of March 2019, Eskom employs 46,665 full time employees, which is 66% more than it needs<\/a><\/strong>, according to analysts.<\/p>\n The group has made efforts in the past to cut back on its costs related to employees – through retrenchments, and a wage freeze – but all measures to do so have been met with backlash from unions, including threats to shut the country’s electricity grid.<\/p>\n In 2018, Eskom agreed to a 7% wage hike for workers, after initially proposing a 0% increase.<\/p>\n As such, Eskom’s 2019 wage bill increased even further, hitting R32.35 billion, up from R28.83 billion in 2018 (including salaries, overtime, benefits, leave and bonuses).<\/p>\n Averaged out, this comes to R693,240 per employee (2018: R592,790), the highest point average pay has reached at the company over the last 17 years.<\/p>\n