Len van Heerden, News24 User
A salary of just under R4m for the governor of the Reserve Bank is not too bad, considering that Jaco Maree earns R18m and Tom Boardman earns R11m.
However, the timing of the announcement that he received a 27.5% salary increase cannot be good for the image he tried to project.
He has taken a median of the inflation target equalling 4% as his increase in the past several years. In addition, he has preached against the dangers of secondary inflation caused by exorbitant salary increases as a result many companies and unions have often used inflation as guide in their wage negotiations.
The news then that Tito was awarded and accepted a salary increase of 27.5% has to reflect the hypocrisy of the man. Early this year, he told people to tighten the belt. I suspect by then he had already received the benefit of his salary increase.
His deputies made even bigger killings earning themselves between 60 and 70% in increases. The committee that awarded Tito this package claim that they benchmarked Tito's salary based on market factors and international guidelines. Odd that he did not benchmark his salary on the individual whose salaries he affected by his call for people to tighten the belt.
We are all aware that CEOs and highly paid individuals are getting on average over 20% in salary increases whereas those reporting to them are getting an average of inflation + 1% to ensure they remain ahead of inflation. Why not benchmark his salary on the recent negotiated packages based on inflation?
I doubt if anyone would blame him if he received 13% + 1% like everyone else, but to double that smacks of hypocrisy.
Failure?
Furthermore, the decision was hidden somewhere in the financial report, and was never announced at the time it was effected or even debated. Lastly, if we use Eskom as an example, one has to ask whether Tito Mboweni has done his job.
Eskom directors were roundly criticised for accepting bonuses despite the deterioration in power stability in the country. The criticism was fair, because in the private sector many individuals are judged on performance.
Tito has failed to keep inflation between 3-6% in the past two years (or so). That has to rank as a failure on his part and surely failed individuals should get kicked out or have to prove themselves to get increases beyond the norm?
es, there are mitigating reasons why, as there were mitigating reasons for the Eskom failures. However, a failure is a failure and it has to rankle to know that Tito with his right side to the cameras (when he allows them) shouting from the mountain top that we need to tighten our belts, feels he is not to be subjected to similar requirements.
Mampara of the Year Candidate with Malema, Sunday Times and Vavi, surely?
Get published on News24 by sending your article, story or column to us
See who has had a say on News24.
Disclaimer: News24 encourages freedom of speech and the expression of diverse views. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors reserve the right to edit or delete any and all comments received.
- News24
Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.