Home » Governance » CEOs Still Earning Mega Perks

Chief executives of State-linked companies, parastatals and local authorities will this month continue to earn mega salaries as Cabinet is yet to finalise deliberations on a corporate governance and remuneration policy framework. The Office of the President and Cabinet in March issued a directive to slash the chief executives and managers’ salaries and allowances to $6 000 per month and below.

In an interview yesterday, Chief Secretary to the President and Cabinet, Dr Misheck Sibanda said Cabinet was still discussing the issue and could not comment further.

“As I told you earlier, the issue is still under discussion at Cabinet and I cannot comment,” Dr Sibanda said.

Investigations by The Herald in some state entities revealed that salaries and allowances of most executives and senior management have not yet been cut as directed.

Government aised all ministries on the implementation of the corporate governance and remuneration policy framework for chief executive officers of State enterprises and parastatals and heads of local authorities through a circular last month.

The Cabinet Circular Number 3 of 2014 dated March 20, 2014, was addressed to all Cabinet members and their permanent secretaries.

A source at one of the parastatals said: “We have not received any communication from our superiors indicating that salaries be slashed.”

The official said no salary changes had been effected as yet at the parastatal.

“We are all waiting to see if anything changed as I have not yet received my payslip,” another official said.

Government slashed salaries and perks for parastatal and local authorities’ bosses to $6 000 monthly, pending finalisation of a comprehensive salary structure being crafted by the Cabinet Committee on State Enterprises and Parastatals Development.

The total package would be split on a 60-40 basis vis-a-vis salaries and allowances, with everything taxed.

About $1 168 950 will be saved monthly as a result of reduced salaries and perks of 73 out of 90 parastatal heads who were earning over $6 000 monthly. A comprehensive analysis by Government revealed that $600 million was pocketed by individuals who sat on boards or were chief executives and senior managers of the country’s 78 parastatals and State enterprises since 2009 and $133 million was lost last year alone.

Source : The Herald

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