Given the serious concerns expressed by many stakeholders about the remuneration of senior management and non-executive directors at State Owned Enterprise (SOEs), I have established a remuneration panel (the panel) that will make recommendations and suggest a framework to determine a rational and consistent remuneration model that protects the interests of the SOE, employees of the SOE, the state and the state’s national assets.
I am very pleased to announce today that the panel is made up of the following highly regarded individuals:
* Ms Barbara Masekela (Chairperson)
* Mr Frans Baleni
*Mr Peter Harris
*Ms Tshidi Mokgabudi
*Mr Omar Latiff
*Mr Anton Botha
*Mr Sipho Ngidi
*Ms Jane Barrett
* Ms Thandi Orleyn
The panel will aim to complete its report by May 2010. The panel:
* Will review, analyse and advise on the structure, components, level and mix regarding remuneration for senior management (the panel will determine the extent of senior managers that it will assess, depending on the size and structure of the relevant SOE) and non-executive directors of SOEs (only those that fall within the ambit of the DPE) and its subsidiaries (where applicable)
* Will address the appropriateness and level of existing remuneration models and propose a rational model for the future including whether at present the remuneration models conform to the applicable SOE remuneration guidelines
* Will accept written submissions from the public and stakeholders on this matter
* Will interview key stakeholders including trade unions, the private sector, remuneration committees and chairpersons of SOEs as well as senior management (that fall under the DPE) as well as the chairpersons of relevant state entities
* Will make its final set of recommendations and proposals for a remuneration framework to the minister
* Will consider any other matter relevant for developing a consistent, rational and uniform remuneration framework.
Specific issues that the panel has been asked to canvass in its final report include the following:
For senior management across SOEs under the DPE:
Note: The principal recommendation will be applied to senior management across subsidiaries or divisions where applicable
* Type, size and importance of SOE (extent to which impact on the total cost to the SOE)
* Appropriate remuneration mix, level and link to personal performance versus corporate performance
* Nature and extent of responsibility of individual concerned and risk
* Basic salary levels
* Bonus and incentive schemes
* Medical, pension, housing and other benefits
* Allowances
* Minimum contractual and labour law obligations
* Relevant Comparators within SOEs and corporate sector and issues of consistency and uniformity
* Any other issue relevant to remuneration, incentives and performance
For non-executive directors:
* Type, size and importance of SOE
* Nature and extent of responsibility of individual concerned and risk
* Remuneration mix and level
* Allowances and benefits (if any)
* Minimum obligations
* Relevant comparators within SOEs and corporate sector and consistency and uniformity
* Any other issue relevant to remuneration, incentives and performance
Issued by: Department of Public Enterprises
19 March 2010
Source: Department of Public Enterprises (http://www.dpe.gov.za/)
