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Salaries of Top South African State-Owned Enterprise CEOs Revealed”

Published by
WIlliam Dube

In South Africa, chief executive officers (CEOs) at state-owned enterprises (SOEs) enjoy substantial salaries, with top-ranking executives earning annual incomes ranging from R2 million to R5 million. Gwede Mantashe, the country’s Minister of Mineral Resources and Energy, recently disclosed these remunerations during a parliamentary Q&A session. He provided a detailed breakdown of the payouts for CEOs and other high-ranking executives at 15 state-owned companies under his purview.

  1. CEOs at South Africa’s state-owned enterprises receive substantial salaries, with top executives earning between R2 million and R5 million annually. The Minister of Mineral Resources and Energy, Gwede Mantashe, disclosed these salaries during a recent parliamentary Q&A session.
  2. Although CEOs are the highest earners, other top positions, such as chief financial officers, operations managers, and regulators, also receive significant million-rand salaries. Larger state-owned companies, like Eskom and Transnet, have even higher pay scales for their top executives.
  3. The disparity between the salaries of top executives and the president has raised questions about the appropriateness of such compensation packages, especially in light of salary freezes for government officials due to Covid-19. This issue will likely remain a critical topic for debate and scrutiny as South Africa continues to address economic recovery and social development challenges.

It is important to note that these salaries pertain specifically to state-owned companies within the Department of Mineral Resources and Energy. The top earner among these executives is the CEO of the Central Energy Fund Group, boasting an annual income of R5.3 million. On the other end of the spectrum, company secretaries receive the lowest pay among executives, earning R1.2 million per year.

The following table presents the highest-paid CEOs at South Africa’s state-owned enterprises:

Company CEOAnnual Salary
Central Energy Fund GroupR5,295,000
Strategic Fuel Fund AssociationR4,991,770
PetroSA GroupR4,371,900
MintekR4,282,704
Council for GeoscienceR4,042,420
African Exploration Mining and Finance Corp.R3,997,500
South African Nuclear Energy CorporationR3,200,000
Petroleum Agency SAR3,083,748
NTP RadioisotopesR2,910,000
National Nuclear RegulatorR2,888,695
South African National Energy Dev. InstituteR2,611,452
South African Diamond & Precious Metals Reg.R2,595,997
National Energy Regulator of South AfricaR2,349,821
National Radioactive Waste Disposal Inst.R2,306,915
Mine Health and Safety CouncilR2,233,480
PelchemR2,191,300
State Diamond TraderR2,149,994
CEOs at South Africa’s state-owned enterprises

Although CEOs are the highest earners, other top positions at these enterprises also command million-rand salaries. Chief financial officers can earn between R1.4 million and R4.2 million; operations managers can receive between R1.6 million and R3.8 million; and regulators can make around R2.2 million annually.

At larger state-owned companies like Eskom, the pay scale is even higher. Former Eskom CEO Andre de Ruyter took home over R7 million, while current acting CEO Calib Cassim earned R4.9 million in his role as chief financial officer. Transnet Group CEO Portia Derby was paid R8.5 million in 2022, while Siza Mzimela, CEO of Transnet Freight Rail, received a R6.1 million package.

Government employees also receive competitive salaries. South African ministers and deputy ministers earn between R2 million and R2.5 million annually, although they have not seen an increase in recent years. Interestingly, some top earners at smaller SOEs earn more than the president. The 2023 budget allocated R4.2 million for President Cyril Ramaphosa’s salary in 2022. However, due to salary freezes in 2020 and 2021 as a result of Covid-19, his actual pay increased to just R3 million that year.

The deputy president’s salary increased to R2.9 million, despite an initial budget allocation of R3.5 million for the year. Since 2018, President Ramaphosa has been donating half of his salary to charities, demonstrating a commitment to social responsibility.

These salary revelations shed light on the lucrative compensation packages for top executives at South Africa’s state-owned enterprises. While the highest earners are CEOs, other high-ranking positions also receive substantial salaries, reflecting the importance of these roles in driving the success of these companies.

However, the disparity between the salaries of top executives and the president raises questions about the appropriateness of such remuneration packages, especially in the context of salary freezes for government officials due to Covid-19. As South Africa continues to navigate the challenges of economic recovery and social development, the transparency and fairness of executive compensation at state-owned enterprises will remain a critical topic for debate and scrutiny.

WIlliam Dube

William Dube is a finance and economic news expert with over 10 years of experience in economic anaylsis, financial product assessment and market analysis. With a numerous certificates from prestigious universities including but not limited to Yale University and the University of Pennyslivenia. William specializes in providing insightful news developments in South Africa and commentary on investment strategies, risk management, and global economic trends. You can contact him on william@rateweb.co.za

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Published by
WIlliam Dube

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