Not The Gravy Train

The Sunday Times (Business Times) recently featured a list compiled by Who Owns Whom of the top ten highest earners within parastatals and other selected state organizations for the year 2008.  The list is as follows:

1. Maria Ramos: Former Transnet CEO (now Chief Executive of ABSA) took home R11.2-million, (R5.79-million performance bonus).
2. Shaun Liebenberg: Former Denel boss, took home R8.35-million in 2008, (R4.1-million performance bonus)
3. Louis van Niekerk: Transnet's former Chief Operating Officer, earned R8.2-million (R4.3-million performance bonus).
4. Chris Wells: Transnet's former Financial Director, (now acting CEO) earned R7.8-million, (performance bonus R4.1-million)
5. Thulani Gcabashe: Eskom's former CEO, received R7.76-million, including a R4.2-million settlement. 
6. Siyabonga Gama: head of Transnet Freight Rail earned R7.5-million, (R3.7-million performance bonus).
7. Geoffrey Qhena: Industrial Development Corporation CEO earned R7.3-million (performance bonus R3.7-million)
8. Transnet's Pradeep Maharaj earned R6.37-million including performance bonuses
9. Industrial Development Corporation Chief Financial Officer Gert Gouws earned R6.3-million, (performance bonus R2.4-million)
10. Transnet's Vuyo Kahla, earned R6.2-million, including performance bonuses

Tau Morwe, Moira Moses and Richard Vallihu, all Transnet executives were ranked 11th 12th and 13th respectively, with former SAA boss Khaya Ngqula having recieved R5.9-million in 2008, in 14th spot.

While there are more than one or two whose performance is somewhat questionable, such as former Eskom CEO Thulani Gcabashe, Transnet make up the majority and for the year ending March 2008, they declared a profit of 4.3 Billion Rand. Many would agree that top execs in organizations that are that profitable earning between 6 and 12 million Rand are in fact underpaid. Maria Ramos in her new position with ABSA is no doubt earning a lot more than that, and understandably so.

The reality is that top salaries along with high end performances bonuses within parastatals are a necessary evil. Rain makers do not come cheap and if the parastatals are to deliver, high calibre people are needed at the helm.

Ernest Roper | Webmaster.

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