(Updates with Eskom’s comment in last paragraph.)
June 29 (Bloomberg) -- Eskom Holdings Soc Ltd., the South African utility spending $73 billion to end power shortages, increased management compensation by 43 percent in the last fiscal year as it raised salaries and added positions.
Eskom’s two executive directors and five executive- committee members received a combined 29.2 million rand ($4.3 million) in the 12 months through March, up from 20.4 million rand a year earlier, according to the utility’s annual report. Two committee members were added in the period, while the departure of former Chief Executive Officer Jacob Maroga in late 2009 cut the number of executive directors from three to two.
The state-owned company, which supplies about 95 percent of South Africa’s power, is spending about 500 billion rand through 2017 expanding plant capacity to avoid a repeat of the shortages that shut most of the country’s mines for about five days in January 2008. Full-year profit more than doubled to 8.4 billion rand as Eskom increased power prices by an average 26 percent.
Brian Dames, CEO of the Johannesburg-based company since June last year, was paid 5.74 million rand, while Paul O’Flaherty, finance director since January 2010, was paid 4.99 million rand.
The executive committee received a combined 18.5 million rand, up from 8.8 million rand a year earlier, after Dan Marokane and Chose Choeu were added as chief commercial officer and corporate affairs head, respectively. Human resources head Bhabalazi Bulunga received 3.04 million rand, compared with 501,000 rand a year earlier, when he worked for two months.
“Those executives who were in place throughout both financial years saw their pay packages increase by an average 5 percent or less,” Eskom said in an e-mailed statement today. “A comparison with similar entities indicates that Eskom’s executive compensation is towards the lower end of the norm.”
--Editors: John Viljoen, Amanda Jordan
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