Push To Pay Parastatal Bosses Perks Based On Performance

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By Staff Reporter

A WAR of attrition has emerged among chief executives (CEOs) for parastatals and State-owned enterprises over a uniform salary cap imposed by the government in 2014, with top executives representing more viable entities demanding higher perks, Finance Minister Mthuli Ncube told Cabinet Tuesday.

Official sources say Ncube presented a report to Cabinet Tuesday saying he had been approached by CEOs of some parastatals and State enterprises complaining the current capping of salaries was unfair.

According to the sources, Ncube managed to convince Cabinet to adopt his proposal to vary CEOs’ salaries depending on the performance of individual entities.

“The minister of Finance gave a report in which he said he had been approached by some parastatal CEOs complaining that the current situation where their salaries are similar to those managing non-performing or defunct companies was unfair,” the Cabinet source said.

“Therefore, he was calling for a policy shift which would reward more those whose entities are performing and are bringing in money.

“Cabinet, therefore, agreed that the salary cap for CEOs for parastatals and public entities salary should be reconsidered depending on the performance of the entities they run.

“It is not proper to treat equally someone who works for such a non-performing parastatal as NRZ (National Railways of Zimbabwe), Air Zimbabwe, or Cold Storage Company which are virtually not doing anything with someone at such a profitable entity like Zinara (Zimbabwe National Roads Administration). So it was agreed at the meeting that these salaries must be differentiated depending on the performance, not to put them in the same bracket.

“It must be commensurate with what each individual is raking in as a CEO.”

The government announced a US$6 000 monthly salary cap for CEOs of parastatals in 2014 after complaints that a large number of them were getting paid astronomical salaries while their companies were not performing and relied on government funds to pay workers’ salaries.