State power utility, Eskom has told its employees that there will be no bonuses paid out in the current financial year.<\/p>\n
This is according to a report by the Sunday Times, citing an internal email sent by Eskom head of human resources, Matome Makwela.<\/p>\n
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%.<\/p>\n
Further, unscheduled maintenance outages were too high at 17%, versus the required 10% goal.<\/p>\n
Eskom has been highly criticised for its remuneration policies – specifically the payout of bonuses – amid an ongoing power and financial crisis in the country.<\/p>\n
Eskom paid its top executives a total of R60 million in the 2014 financial year, up from R57.4 million the year before.<\/p>\n
Over 40% of this amount \u2013 R24.4 million \u2013 was paid to the group\u2019s top three executive directors.<\/p>\n
Former chief executive, Brian Dames, who left the utility at the end of March 2014, took home a pay package of R15.4 million \u2013 the highest salary paid by the company in more than a decade.<\/p>\n
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.<\/p>\n
According to public enterprises minister Lynne Brown, long-term incentive bonuses, however, have not been decided upon or paid at Eskom since April 2012.<\/p>\n
Eskom CEO bonus still on the cards<\/a><\/strong><\/p>\n Eskom executives\u2019 pay tops R60 million<\/a><\/strong><\/p>\n Eskom executives score R11 million in bonuses<\/a><\/strong><\/p>\n