Q&A’s, 2007

National Assembly
Question for Written Reply
IQP: 33- 2007

Question 1481

Dr S M van Dyk (DA) to ask the Minister for Public Enterprises:

Whether, in light of the financial losses suffered by the SA Airways in the 2006 – 07 financial year, 12 out of the 15 members of the executive committee of the SAA each receive more than R 1 million per year in salaries and other benefits; if not, what is the position in this regard; if so, (a) on what basis and (b) according to what regulations and procedures are these salaries determined? NW 2241E

Reply

(a) The inclusive annual remuneration packages of 12 of the 16 Executive Committee members disclosed in the 2006- 07 SA Airways Annual Report exceeded R 1 million. However, 4 of the 16 members listed, have resigned, hence their total remuneration packages also included termination benefits.

Apart from two Executive Committee members who each received bonuses of R 5000 and R 6000 no bonuses or profit sharing was paid to any of the executive committee members in the 2006 / 07 financial year.

(b) Executive Committee Members are remunerated in accordance with their individual contractual agreements with SAA.

The Remuneration Committee (RemCo), a sub-committee of the SAA Board reviews any adjustments to the remuneration of Executives. The Total Cost of Employment Packages of the Executives are benchmarked to the current market trends using SAA’s internal equity as well as the Hay Methodology that independently rates the level of expertise, complexity, and accountability inherent to the position of each Executive Committee Member.