Eskom execs should decline bonuses‚ Reward Association says

For Eskom’s executives to be paid bonuses of R6-million “is contentious and should be declined”‚ the South African Reward Association (SARA) said on Monday.

The group said in statement that reports of “executives awarding themselves” the bonuses “has left a sour taste in the mouths of the National Union of Mineworkers”.

SARA’s Dr Mark Bussin said: “People are struggling to come out on their salaries and they don’t understand what executives do to earn their millions.

“It causes resentment and anger amongst workers and creates a platform for radical elements‚ radical political parties and radical politicians.”

Bussin‚ however‚ noted that Eskom’s executive “do run their business as a business should be run”.

They “are under continual scrutiny‚ pressure‚ risk and forever increasing fiduciary responsibility”‚ and it is this which “drives executive pay up and up”.

“However‚ with political interference setting unrealistic political goals and targets‚ it can put Eskom into the red. This is not entirely the executives’ fault. Their original budget showed a profit‚ but the politicians‚ for example‚ instructed the electrification of several voter areas and they made a loss – not exactly their fault‚” he added.

Bussin said he had “coined” a new word: the “optics” of remuneration.

“With rotating executives‚ blackouts‚ Medupi and general negative press – the optics don’t seem right to earn millions in bonus‚” he said.

“This calls for wisdom and sensitivity on the part of Eskom executives. Accepting the millions is contentious and should be declined. Regardless of how lawful or technically correct the bonus calculation is. The optics aren’t right.”

SARA describes itself as “a professional body aimed at promoting the reward profession and practices”.