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Telkom cuts bonus for Nxasana, top brass
Khulu Phasiwe
Public Policy Correspondent
TELKOM said yesterday that it had reviewed the formula used to calculate and award performance bonuses to its executive directors.
The company’s critics believe the move has been made under pressure from trade unions.
The move has resulted in CEO Sizwe Nxasana’s bonus for the 2004-05 financial year being significantly reduced, to R3,7m from R8,4m in 2003-04.
The fixed-line telecommunications company and other parastatals have been under attack by unions lamenting the “pittance” that workers were paid while executives were earning millions in salaries and bonuses.
Recently, the National Union of Metalworkers of SA said it was disgusted that Eskom CEO Thulani Gcabashe had had his package more than doubled to R13m while the company was denying workers an 8% wage increase this year.
Analysts said that the overwhelming criticism levelled at Telkom last year for the excessive remuneration of its directors had probably forced the board to review the manner in which it determined the bonuses.
But Telkom spokeswoman Lulu Letlape yesterday attributed the reduction in the bonuses to the revised calculation method.
She also cited the fact that the company had managed to exceed its set targets by only 17%, compared with 42% in the 2003-04 financial year.
In its 2004-05 annual report filed with the Securities and Exchange Commission in the US, the fixed-line operator said it paid its directors a total amount of R35m, down from R48m in the 2003-04 financial year.
Telkom American depositary receipts trade in the US.
The company said it had paid departing CEO Nxasana a bonus of R3,7m and an annual salary of R2,1m, compared with R1,9m in 2003-04. Nxasana’s total package for the year was R6,97m. Payment of the R8,4m bonus awarded to Nxasana in 2003-04 was deferred to 2004-05.
Telkom cuts bonus for Nxasana, top brass
Khulu Phasiwe
Public Policy Correspondent
TELKOM said yesterday that it had reviewed the formula used to calculate and award performance bonuses to its executive directors.
The company’s critics believe the move has been made under pressure from trade unions.
The move has resulted in CEO Sizwe Nxasana’s bonus for the 2004-05 financial year being significantly reduced, to R3,7m from R8,4m in 2003-04.
The fixed-line telecommunications company and other parastatals have been under attack by unions lamenting the “pittance” that workers were paid while executives were earning millions in salaries and bonuses.
Recently, the National Union of Metalworkers of SA said it was disgusted that Eskom CEO Thulani Gcabashe had had his package more than doubled to R13m while the company was denying workers an 8% wage increase this year.
Analysts said that the overwhelming criticism levelled at Telkom last year for the excessive remuneration of its directors had probably forced the board to review the manner in which it determined the bonuses.
But Telkom spokeswoman Lulu Letlape yesterday attributed the reduction in the bonuses to the revised calculation method.
She also cited the fact that the company had managed to exceed its set targets by only 17%, compared with 42% in the 2003-04 financial year.
In its 2004-05 annual report filed with the Securities and Exchange Commission in the US, the fixed-line operator said it paid its directors a total amount of R35m, down from R48m in the 2003-04 financial year.
Telkom American depositary receipts trade in the US.
The company said it had paid departing CEO Nxasana a bonus of R3,7m and an annual salary of R2,1m, compared with R1,9m in 2003-04. Nxasana’s total package for the year was R6,97m. Payment of the R8,4m bonus awarded to Nxasana in 2003-04 was deferred to 2004-05.
