Eskom's books show hefty increases paid to fired CEO Brian Molefe and embattled CFO Anoj Singh, reports Mail & Guardian's Phillip de Wet.
De Wet says Molefe and Singh earned R14-million from Eskom in the 2016 financial year - a combined increase of 92% in its most recent year.
According to De Wet, this is all thanks to a "long-term share incentive scheme" engineered to benefit top executives.
In the 2016 financial year, the two of them earned a combined R14 million. Eskom found a way to just about double what their take-home would've been in the last financial year.— Phillip de Wet, Associate editor at Mail & Guardian
Over the last financial year, Eskom took very good care of Molefe and Singh, despite the fact that Eskom has seen a significant drop in profits and across results.— Phillip de Wet, Associate editor at Mail & Guardian
How does the scheme work?
Eskom creates fictional bank accounts for each executive and deposits a set amount of money at the start of the financial year, de Wet explains.
The money earns interest and at the end of a three-year period each executive is paid a percentage of the final amount, based on Eskom's performance targets.
Eskom found quite innovative ways to make sure that they would not go home poor.— Phillip de Wet, Associate editor at Mail & Guardian
If the company performs on target, each executive receives 50% of the of the original amount.. There's a little head room there.— Phillip de Wet, Associate editor at Mail & Guardian
In addition, Molefe and Singh jointly walked away with R1.4 million under category of costs related to telephone fees, security and vehicle expenses.
Singh claims he does not know how the money landed on his payslip.
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This article first appeared on CapeTalk : How Eskom's crafty incentive scheme secured a 92% pay raise for Molefe and Singh