Q&A’s, 2007

NATIONAL ASSEMBLY
Question for Written Reply
IQP: 33-2007

Question 1503

Prof B Turok (ANC) to ask the Minister for Public Enterprises:

1. Whether there is a policy on the remuneration of Chief Executives of the parastatals; if not, why not; if so, what is the policy;

2. Whether this policy is in line with the current practice in the parastatals, if not, why not; if so, what are the relevant details? NW2268E

Reply

1. The Department has developed guidelines for the remuneration of Non-Executive Directors and Executive Directors of SOE, including Chief Executive Officers (CEO), in order to achieve consistent remuneration practices in SOE measured against harmonised benchmarks. The guidelines have been prepared based on a market comparator survey of over 600 South African Companies differentiating, for example size and complexity. Relevant National Departments, SOE and the Governance and Administration Cluster of FOSAD were consulted and the guidelines have now been referred to Cabinet for consideration and approval.

2. Although remuneration practices in SOE have historically relied upon independent advice informed by similar surveys, a harmonised benchmark applied by all SOE has been absent. As a result some inconsistencies in remuneration practices resulted over time. When approved, the guidelines will progressively enhance consistency and harmonization of SOE remuneration practices.