{"id":47011,"date":"2013-10-03T00:23:01","date_gmt":"2013-10-02T22:23:01","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=47011"},"modified":"2013-10-03T08:44:57","modified_gmt":"2013-10-03T06:44:57","slug":"eskom-ceo-pay-vs-performance","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/47011\/eskom-ceo-pay-vs-performance\/","title":{"rendered":"Eskom CEO pay vs performance"},"content":{"rendered":"

Eskom<\/a> has endured many hardships over the past decade – from load shedding in 2008, the global economic crisis in 2009, to more recent pressures on the national grid and criticism from every sector.<\/p>\n

The state-owned power company’s latest, and much-delayed project – the Medupi power station – has come under fresh criticism, as labour disputes, technical issues and manufacturer blunders have pushed the project months behind schedule, and at great financial cost.<\/p>\n

However, when it comes to paying its executives handsomely, the state-owned power supplier isn’t shy in opening its coffers – even when things are at their worst.<\/p>\n

BusinessTech looks at Eskom’s chief executive remuneration over the past decade, and weighs it up against how profitable the entity was in each respective financial year.<\/p>\n

All figures below were taken directly from Eskom’s annual financial reports, from 2002 to 2013.<\/p>\n

Eskom CEO salaries and profits from 2002 to 2013<\/h3>\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Year<\/strong><\/td>\nCEO<\/strong><\/td>\nSalary<\/strong><\/td>\nProfits<\/strong><\/td>\n<\/tr>\n
2002<\/td>\nThulani Gcabashe<\/td>\nR3.97 million<\/td>\nR3.70 billion<\/td>\n<\/tr>\n
2003<\/td>\nThulani Gcabashe<\/td>\nR4.98 million<\/td>\nR3.42 billion<\/td>\n<\/tr>\n
2004<\/td>\nThulani Gcabashe<\/td>\nR6.49 million<\/td>\n–<\/td>\n<\/tr>\n
2005<\/td>\nThulani Gcabashe<\/td>\nR6.56 million<\/td>\nR5.20 billion*<\/td>\n<\/tr>\n
2006<\/td>\nThulani Gcabashe<\/td>\nR5.20 million<\/td>\nR4.45 billion<\/td>\n<\/tr>\n
2007<\/td>\nThulani Gcabashe<\/td>\nR6.16 million<\/td>\nR7.22 billion<\/td>\n<\/tr>\n
2008<\/td>\nThulani Gcabashe<\/td>\nR7.76 million<\/td>\n-R0.17 billion<\/td>\n<\/tr>\n
2009<\/td>\nJacob Maroga<\/td>\nR4.96 million<\/td>\n-R9.67 billion<\/td>\n<\/tr>\n
2010<\/td>\nBrian Dames<\/td>\nR5.69 million<\/td>\nR3.62 billion<\/td>\n<\/tr>\n
2011<\/td>\nBrian Dames<\/td>\nR7.56 million<\/td>\nR12.80 billion<\/td>\n<\/tr>\n
2012<\/td>\nBrian Dames<\/td>\nR8.28 million<\/td>\nR13.25 billion<\/td>\n<\/tr>\n
2013<\/td>\nBrian Dames<\/td>\nR8.46 million<\/td>\nR5.18 billion<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

* Profit over a 15-month period as Eskom restructured business<\/small><\/p>\n

CEOs over the years<\/h3>\n

Over the past decade, Eskom has had three chief executives holding the reins at the company.<\/p>\n

Thulani Gcabashe<\/a>, who was appointed as CEO in 2002, had his employment contract expire on 31 December 2007 – during the company’s 2007\/08 financial year.<\/p>\n

Gcabashe’s successor, Jacob Maroga<\/a> was appointed to take over the role from May 2007, meaning both chief executives were on the books for that financial year, earning R7.76 million and R3.91 million, respectively.<\/p>\n

Maroga’s tenure at Eskom was short-lived, as the executive headed to the power company during its most trying time – namely the dreaded load-shedding period as well as the global economic crisis.<\/p>\n

Maroga stayed on Eskom’s books until October 2009 – but was replaced by current CEO, Brian Dames<\/a>, as early as February 2008. For the 2009 financial year, Maroga was paid R4.96 million and Dames was paid R2.98 million – this despite Eskom incurring a R9.7 billion loss.<\/p>\n

Dames has seen Eskom through two of its most profitable years (2011 and 2012) since the losses of the last decade.<\/p>\n

\"Eskom<\/a>

Eskom CEO salary 2002-2013<\/p><\/div>\n

\"Eskom<\/a>

Eskom profits 2002-2013<\/p><\/div>\n

Ebb and flow<\/h3>\n

Eskom CEO pay over the past decade has remained fairly stable, with exception to the 2007 and 2008 period, in which load-shedding was prevalent, and in 2009, when the global economy was in deep trouble.<\/p>\n

In 2004\/05, Gcabashe’s pay totaled over R15 million; however, this was due to a restructuring of Eskom’s financial year, and reflected a 15 month period from 1 January 2004 to March 2005.<\/p>\n

According to Eskom, in 2004\/05 the company “rebooted” employment contracts for the new financial year, and in doing so had to fulfill the termination requirements attached to contracts which had not yet come to term.<\/p>\n

This resulted in Gcabashe being paid R6.486 million for 2004 (restraint and termination payments) and R6.559 million in compensation for the 2005 financial year, under a new contract.<\/p>\n

In the 2007\/08 financial year, the company spent R11.7 million on executive pay (for both Gcabashe and Maroga) despite the loss of R170 million in profit – and 2009’s payout (for Maroga and Dames) totaled R8 million – the two highest payout for executives in the past decade, over the most troubled period.<\/p>\n

\"Eskom<\/a>

Eskom profits vs Salaries 2002-2013<\/p><\/div>\n

More on Eskom<\/h3>\n

South Africa\u2019s electricity price shock<\/strong><\/a><\/p>\n

Eskom load shedding already in effect: analyst<\/strong><\/a><\/p>\n

Please reduce power usage: Eskom<\/strong><\/a><\/p>\n

Eskom tariff hike scaled down<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

BusinessTech looks at Eskom’s chief executive remuneration over the past decade, and weighs it up against how profitable the entity was in each respective financial year.<\/p>\n","protected":false},"author":14,"featured_media":47029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2005,1164,26,6774,6773],"class_list":["post-47011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-brian-dames","tag-eskom","tag-headline","tag-jacob-maroga","tag-thulani-gcabashe"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47011","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=47011"}],"version-history":[{"count":13,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47011\/revisions"}],"predecessor-version":[{"id":47051,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47011\/revisions\/47051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/47029"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=47011"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=47011"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=47011"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}