http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.27Change: -0.05
R/$ = 11.30Change: -0.08
Au 1211.13 $/ozChange: -6.84
Pt 1303.00 $/ozChange: -6.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 14, 2012

New State company remuneration framework to stress delivery against compacts

Back
Johannesburg|Africa|Public Enterprises|Africa|South Africa|Service|Malusi Gigaba|Tshediso Matona|Southern Africa
|Africa||Africa||Service||
johannesburg|africa-company|public-enterprises|africa|south-africa|service|malusi-gigaba|tshediso-matona|southern-africa-region
© Reuse this



South Africa’s Department of Public Enterprises (DPE) says its review of State-owned company (SoC) executive remuneration is well advanced and that the model that is eventually adopted will seek to strengthen the link between performance, as defined by shareholder compacts, and remuneration.

Addressing delegates to a Chartered Secretaries Southern Africa conference in Johannesburg on Friday, director-general Tshediso Matona said the department was “grappling” with ways to balance the need to attract top-level talent with society’s current anxiety over salaries that, in some cases, were perceived to be excessive.

Prevailing remuneration methodologies being used by the eight SoCs for which the DPE had direct shareholder oversight had been driven by the entities themselves, which had placed the DPE in a “reactive position” on the matter.

Public Enterprises Minister Malusi Gigaba instituted a review of the framework and indicated in August that he was likely to consider the outcomes in September, before handing the report to Cabinet for its consideration.

A challenge, Matona indicated, was how to respond in instances where remuneration levels had already breached certain thresholds.

“[In those circumstances], what do you do? Do you undertake a massive across-the-board reduction of remuneration levels, which are bound in contractual relationships? Or, do you temper the rate at which these remuneration levels are rising? I think the answer lies between those two extremes,” Matona said.

In future bonuses needed to be justified by “demonstrable achievements” of the company and its executives against the shareholder compact.

There was also a need to de-emphasise the monetary rewards associated with serving on a SoC board, or as an executive and to re-emphasise the public-service dimension.

“I am optimistic, because where we have, for example, had a moratorium, for two years, with regard to the remuneration of directors, I haven’t seen a massive exodus,” Matona said, adding that there were many committed South Africans who want to use their time to engage in public service.

The new framework, therefore, will seek to appeal to public service, while “not making remuneration incentives so unattractive as to place the companies themselves at risk”.

Remuneration standards had already been developed by the DPE to guide the SoC boards in determining and setting policies for executive management. These seek to align performance with the shareholder compact; but Matona indicated that there was “still a long way to go”.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 1 hour 5 minutes ago Information and communication technology services group Gijima on Tuesday announced that it would undertake a rights offer and restructure its existing trade receivables securitisation funding programme to ensure that it had sufficient working capital to underpin the...
Lynne Brown
Updated 1 hour 43 minutes ago Public Enterprises Minister Lynne Brown has urged that the best candidates be nominated to serve on the boards of State Owned Entities (SOEs). “Help me identify your brightest and our best,” said Minister Brown as she launched an initiative to obtain the best pool of...
Updated 1 hour 48 minutes ago The Square Kilometre Array (SKA) has brought art and science together in an exhibition celebrating ancient humanity’s appreciation of the night sky. In a first for the SKA Organisation, indigenous and local artists from South Africa and Australia have collaborated in...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu.  Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.
With South Africans facing the challenge of reducing electricity consumption, the biennial Eskom Energy Efficient Lighting Design Competition, to encourage the integration of energy efficient lighting in architectural, engineering and interior design, received a...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks