Hogan explains what former Eskom CEO was paid
November 25, 2009
Public Enterprises Minister Barbara Hogan has told Parliament exactly how much the former chief executive of Eskom, Jacob Maroga, received in his pay packet.
Giving a written reply on Tuesday to a Parliamentary question from the parliamentary leader of the Freedom Front Plus, Pieter Groenewald, Hogan said that when he was first taken on in May 2007 he was paid R3 850 000.
His salary rapidly increased with an increase in that October of 7 percent to R4 119 500.
This was, Hogan said, "similar to the percentage increase awarded to all F-band employees during the October 2007 annual increase period".
The in April 2008 he got another 15.31 percent, the median of the market, according to Hogan taking him to R4 750 000 on the anniversary of his appointment.
Then again in October when the company pays everyone annual increases he was paid another 8.84 percent, taking him to R5 170 000.
"(The) increases were awarded in terms of Eskom's remuneration policy to reward executives at the median of the market," Hogan said.
The minister explained that subsequent to his appointment, Eskom replaced its remuneration approach for managers from a "salary plus benefits" to a total guaranteed package (TGP) basis.
Benefits such as pension fund and medical aid are then structured within the TGP.
"There are no fixed bonuses," she said. "Bonuses are based on an individual's performance over 12 months."
But bizarrely she lists the first bonus Maroga received as a short-term incentive bonus of R1 103 000.
It was allocated in March 2007, a full month or more before he was actually officially appointed, although he was appointed CEO designate in February.
The following March he decently declined a short-term incentive reward for that year, though he did manage to accept a long-term incentive bonus of R681 446.
A year later the board deferred the allocation of all bonuses. - I-Net Bridge
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