One group of government employees who get paid between R933,000 and R6 million

The CEOs of South Africa’s state-owned enterprises that report to the Mineral and Petroleum Resources Department are paid between R933,000 and R6 million annually.

Mineral and Petroleum Resources Minister Gwede Mantashe recently revealed these CEOs’ annual remuneration in response to a Parliamentary question from DA MP Mergan Chetty.

Chetty asked the minister for the full details of the current annual remuneration package for each state-owned enterprise (SOE) that reports to him.

In addition, Chetty asked for the basic salary, allowances and all benefits of the CEO or the SOE’s most senior official, as well as their performance bonuses.

In his response, the minister revealed that the lowest-paid CEO on the list heads up Alexkor and has a total annual remuneration of R933,926.51.

However, the minister specified that this is because it is an interim CEO position on a contract basis at 50% utilisation per month, charging a rate of R4,888.00 per day.

Alexkor deals in mining diamonds on land, along rivers, on beaches, and in the sea along South Africa’s north-west coast.

The organisation also deals in geology, exploration, ore reserve planning, rehabilitation and environmental management. It is a Schedule 2 public entity wholly owned by the government.

The highest-paid CEO on the list heads up the Central Energy Fund (CEF), which was established in the 1950s.

The CEF is a Schedule 2 state-owned diversified energy company that contributes to South Africa’s energy supply security through exploration, acquisition, development, marketing, and strategic partnerships.

The CEF’s CEO receives a total annual remuneration of R6.15 million, not including the R2.84 million bonus received in the 2023/24 financial year.

Many of these CEOs’ performance bonuses are included in their total remuneration packages. However, for some, their yearly bonuses are in the millions.

For example, the Strategic Fuel Fund’s (SFF) CEO has an annual remuneration package of R5.77 million and received a bonus of R2.38 million in the 2024/25 financial year.

The SFF Association is a non-profit company whose shares are held by its holding company, the CEF, which is wholly owned by the state.

Other benefits included in some CEOs’ packages include a R42,000 cellphone and data allowance for the State Diamond Trader CEO and a R259,133.28 contribution to the Council for Geoscience CEO’s provident or pension fund.

Remuneration at SOEs

Unlike private companies in South Africa, many state-owned companies do not link their employees’ or CEOs’ compensation packages to the companies’ performance.

Instead, these CEOs’ compensation must follow the Department of Public Service and Administration’s remuneration guidelines and other regulations.

Therefore, while many of the CEOs Mantashe mentioned are paid well, their companies may not perform well or may not even be profitable.

In addition, many of these companies are not required to run at a surplus, as this is not included in their annual KPIs.

Many of the SOEs Mantashe listed reported significant deficits in the past few financial years.

For example, the Council for Geoscience reported its first surplus in four years in the 2023/24 financial year.

The SOE made a surplus of R51.29 million in 2023/24, and deficits of R89.52 million in 2022/23, R15.10 million in 2021/22 and R13.01 million in 2020/21. The year before, it made a surplus of R65.05 million.

In addition, the Council for Geoscience only received a clean audit opinion in two of those five years, with the rest recieving a “financially unqualified” outcome.

This means findings have been raised on either reporting on predetermined objectives, non-compliance with legislation, or both.

Regardless of this financial performance, the council’s CEO receives a total annual remuneration of R4.70 million and was awarded a R467,808.61 bonus in 2023/24 and a R405,733.65 bonus in 2024/25.

Below is an overview of the remuneration of these CEOs’ annual remuneration packages, courtesy of Mantashe.