Eskom clarifies bonuses

Friday, July 9, 2010

Pretoria - Reports pertaining to the salary increases of Eskom executives are factually incorrect, says the parastatal.

Eskom says the reports that stated that executive committee members received average increases of 83 percent with the CEO Brian Dames earning an additional 91 percent over 2009 are incorrect.

The parastatal says the reports are based on calculations that fail to extract and compare the comparable figures for the detailed information provided in its 2010 annual report.

"The fact is that the salary increase for Brian Dames was 10,6 percent, including a promotional adjustment for being promoted to Chief Officer in 2008. His salary adjustment was spread over two years," says Eskom in a statement.

As stated in the 2010 Annual Report, 2010 bonus payments are for the 2009 and 2010 financial years paid in the 2010 financial year.

This after 2009 bonuses were deferred on conditions of achieving cost savings of R22 billion of which the target was achieved.

"The company has a formal remuneration plan that provides for bonus payments for all its employees, including management executives. Bonus payments to executive committee members and managing directors for this year (2009/10) were determined by the Human Resources and Remuneration Committee of the Board, based on the executives achieving business and personal goals in line with the shareholder compact."