Question NW3733 to the Minister of Finance
12 November 2015 - NW3733
Figg, Mr MJ to ask the Minister of Finance
(1)With reference to his reply to question 3441 on 2 October 2015, what was the total remuneration amount earned by (a) Monwabisi Kalawe and (b) Wolf Meyer in the 2014-15 financial year in any capacity besides that of director; (2) what are the reasons for the disparity between the remuneration amounts paid to (a) Monwabisi Kalawe and (b) Wolf Meyer as directors of the SA Airways Group in comparison with that of the (i) board chairperson Duduzile Myeni and (ii) other 10 directors?
Reply:
1) (a) M Kalawe R4 552 981.00
(b) W Meyer R3 661 080.00
2) (a)(b) The CEO and the CFO are permanent full time employees of the company. They are also executive Directors which mean they are compensated to ensure execution of strategy and business imperatives. Their remuneration is based on a Total Cost of Earnings principle on their remuneration base at the time of negotiating appointment offers, industry/ market factors, and the ability of SAA to attract candidates for these executive positions. Annual increases are based on performance.
(i)(ii) The Chairperson and Non-Executive Directors are rewarded Director Fees in accordance with market practice and benchmarking against fees for Non-Executive Directors of the Board. Fees paid are determined on the basis of either an annual retainer fee or as per meeting fee. The quantum of the fee established is based on the number of board meetings attended as well as the number of board sub-committees that they serve on.