In 2006 the average total annual remuneration of all Chief Executive Officers of JSE listed companies was R4,57 million. The CEO of Eskom received 50% more than this average. Because the population contains certain large variances on the bottom of the scale as well as at the top of the scale, an average was also calculated that excludes the top and bottom 5%. In comparison to this adjusted average, the Eskom CEO received 105% more than his counterparts. In terms of this comparison, the CEO of Eskom is a very highly remunerated officer, possibly one of the highest in the country.

The performance criteria for the payment of the “Award Performance Shares” includes financial and non-financial criteria as per an agreed weighting per performance areas that includes capacity, cost of electricity, people, environmental factors, customer service and quality of supply. The weighting is not disclosed in the annual report but if the payment

The first of these “Award performance Shares” bonuses to the amount of R9,22 million is due for payment on 31 March 2008. Should the board of Eskom not seriously reconsider the merits and criteria for payment of these bonuses? The actual purpose and reason for the existence of Eskom is the reliable supply of power to South Afirca. In this they have failed. It seems that the performance measurement criteria might have been a significant factor in contributing to the creation of the current problem. The performance measurement process should reflect this failure and prevent the payment of any bonuses.