Salary increases for SoE bosses

THE government approved new rules that increased salaries of parastatal bosses and senior managers, with the highest rated chief executives qualified to earn over N$2 million a year – excluding bonuses.

These details are revealed in the latest Government Gazette published on Monday by public enterprise minister Leon Jooste.

The last pay regulations of how much parastatal executives should earn were done by President Hage Geingob when he was Prime Minister in 2013.

Parastatal executives will be paid based on three categories: Tier 1, Tier 2 and Tier 3.

These categories are based on the parastatals’ income, number of workers, market share, skills and total assets.

The guidelines show that a chief executive in Tier 3 (which is the highest paid category) should earn between N$964 000 and N$2 million per year. The pay packages include inflation increases but exclude bonuses.

These figures are an increase from the regulations passed in 2013 that said that chief executives in that category should earn between N$752 000 up to N$1, 6 million a year.

Tier 3 includes parastatals such as Namibia Water Corporation, August 26 Holdings, Namibia Financial Institutions Supervisory Authority, Air Namibia, Namibia Port Authority, NamPost, Namibia Power Corporation, Roads Contractor Company, Telecom Namibia, TransNamib and Namibia Financial Institution Supervisory Authority.

Senior managers under this tier will be paid up to N$1,2 million, an increase from last regulations that said that managers in this category should not earn more than N$925 000.

Interestingly, only one parastatal out of 11 top paid chief executives is led by a woman – acting Air Namibia managing director Mandi Samson.

It’s not clear what impact the new rules will have on salaries. Boards and chief executives bluntly ignored past regulations.

Even though regulations stated that CEOs in Tier Three should not earn more than N$1,6 million in 2014, some chief executives were paid way above that.

For instance, NamPower managing director Simson Haulofu was offered an N$3,4 million a year in 2016 which includes an N$1,7 million guaranteed salary while the rest is made up of perks such as water and a housing allowance, a pension, medical aid and an annual bonus.

If a parastatal falls under Tier 2, its chief executive should earn a maximum of N$1,3 million annually, the new rules say.

This is also an increase from 2014 regulations that stated that chief executives in Tier 2 should only earn up to N$1 million a year.

Parastatals under Tier 2 includes the Roads Funds Administration, the Communication Regulatory Authority of Namibia, Namibia Standards Institution and the National Youth Service, Agricultural Bank of Namibia, Development Bank of Namibia, Namibia Airports Company, Namibia Institute of Pathology, Namibia Wildlife Resorts and Namibia Housing Enterprise.

Also in this category are the Motor Vehicle Fund, Roads Authority and the Social Security Commission.

Senior managers under this category are allowed to earn a maximum of N$1 million, an increase from the N$784 030 set in 2014.

If a parastatal falls under Tier 1 (the lowest paying rank), its chief executive should earn a minimum of N$545 000 and maximum of N$1 million.

This too is an increase for parastatal chief executives under this category with the minimum pay increased from N$425 200 while the maximum was N$851 600.

Tier 1 includes parastatals such as the Lüderitz Waterfront Development Company, the Offshore Development Company (ODC), the Zambezi Waterfront, the Karakul Board of Namibia and the National Disability Council.

Other parastatals in the category are Namibia Agronomic Board, Namibia National Reinsurance Corporation, New Era Publication Corporation, Star Protection Service, Windhoek Machinen Fabrik, Electricity Control Board, Meat Board of Namibia, National Council for Higher Education and the Namibia Qualifications Authority.

A typical senior manager in this category is allowed to earn a maximum of N$722 400, an increase from N$563 600 set in 2014.

Directors of boards will receive an increase according to their tiers.

Public enterprise minister Jooste told yesterday that the latest pay structures are an update since the last increase in 2014.

The new remuneration packages, Jooste says, are merely allowing for an inflationary adjustment since the previous guidelines were published.

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