Massive salary increases, huge performance bonuses, car allowances plus company shares for free; I'm convinced that I want to be the CEO of a state-owned company when I grow up.

Although the CEOs of state-owned companies have been taking home the bacon, the parastatals have been struggling to keep their heads above water, running at billions of rands in losses. Many — if not all — state-owned companies have run into financial difficulties requiring the government to throw them lifelines worth billions. SAA wanted R1-billion to R4-billion, Denel is seeking nearly R1.7-billion to replace R1.1-billion in government guarantees while the SABC needs R2-billion.

Eskom CEO Jacob Maroga came under harsh criticism last week after it immerged that the struggling parastatal rewarded him a 26.7 percent salary increase, taking his remuneration package from R3.914-million in 2008 to R4.96-million this year. In addition, he also received performance shares worth R681 446. The ordinary Eskom employee received an average 10.5 percent pay hike, while electricity consumers were hit with a 31.4 percent power price hike.

Ngqula received a 'retention premium'

Sacked SAA CEO Khaya Ngqula bagged almost R20-million from the time he was appointed in October 2004 until he was given the boot in 2008. Ngqula's salary and fund contributions totalled R2 295 000 in 2004/05. In 2005/06, he received a salary and fund contributions of R5-million while it topped R5-million in 2006/07. In 2007/08 he also received a 'retention premium' of R687 669. In the four years he was at SAA, Ngqula bagged R19 832 669.

The national airliner, on the other hand, posted vast losses over the past couple of years. In 2006/07, government threw a R1.3-billion lifeline to the beleaguered airliner on the condition of profitability. However, by the end of 2007, the group's losses totalled R883-million and yet Mr Ngqula walked away with a R2-million performance paycheque in 2005/06.

Suspended SABC CEO Dali Mpofu certainly had his piece of the taxpayer pie, raking in a 47.3 percent bonus increase and a 19.7 percent salary increase in 2008. While on suspension earlier this year, Mpofu still enjoyed the salary benefits of an in-service CEO. He received a R1.4-million bonus in 2007 which was hiked to R2.1-million in 2008. His salary was increased to R4.5-million while he also received more than R6.5-million for the remainder of his contract after refusing reinstatement.

Poor management rewarded

The national broadcaster meanwhile buckled under financial strain and a R1-billion government bailout was needed to save the more than 80 000 jobs that could otherwise have been lost. Surely management bonuses should be the first to go when a company is underperforming?

There seems to be a trend at state-owned enterprises where poor management is rewarded with huge payouts. Although I agree that great leadership doesn't come cheap, these fat cats' bonuses should be subject to the company's overall performance. If the company runs at a loss, the consequences must be felt where it hurts the most. Government bailouts should be a thing of the past as tax monies can be put to better use than sitting snugly in the bank accounts of CEOs.

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