Executives Are Rewarded While Profits Decrease

10th December 2010

Even in the economic downturn, it’s still raining cash for some wealthy executives. Profits plummet, yet their bonuses pour in as new recruitment is non-existent and job loss is rampant.

Many executives have come under fire from the unions, as well as Gill Marcus, Reserve Bank governor, who is railing about this year’s UK Rich List. It cites several cases of bigwigs receiving huge bonuses, even though workers are losing their jobs and profits slowly are drying up.

Add to this their basic pay, share gains and other benefits, and you’ve got some hefty earning power.

The largest earner was Pine Pienaar, former CEO of Mvelaphanda Resources. He pocketed R63.07-million after the organisation’s unbundling last year. He resigned shortly thereafter. A cool R34.45-million termination benefit and R22.38-million performance bonus was included.

Going on the fact that he worked 210 days a year, his career earned him R37,500 per hour. Most jobs for South Africans earn this amount per annum.

Per share, Mvelaphanda’s headlining job shares rose by 1688% in the financial fiscal year. This was due to accounting preparation for a huge stake in Northam Platinum, as well as the Gold Fields venture.

Tim McClure, CEO of Grindrod, received a performance bonus of R31.97-million; however, Grindrod's earnings per share faltered by 63%.

Marius Loppers, of BHP Billiton, ran third amongst the other career cartels, earning justifiable criticism after getting a bonus check of R12.99-million.

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