South Africa’s state-owned enterprises (SOEs) – over 100 in number – are vital to delivering essential services and driving economic development. However, recent disclosures reveal substantial compensation packages for the executives leading these institutions, sparking questions about value and accountability.
SOE Executive Compensation: A Snapshot
According to parliamentary replies, Boitumelo Masoka, CEO of the Development Bank of South Africa (DBSA), currently holds the position of highest-paid SOE executive. Her total salary package for the 2025 financial year reached R15.5 million. This figure includes a basic salary of R6.8 million, benefits, and significant performance and retention bonuses totaling R7 million.
Following Masoka, Dan Marokane, CEO of Eskom, received a package exceeding R11 million for the 2025 financial year. Edward Kieswette, Commissioner of the South African Revenue Service (Sars), earned R10.7 million. While Sars is not technically classified as an SOE, its commissioner’s salary was included in the parliamentary response. Rounding out the top five are Musa Mabesa, Principal Executive Officer of the Government Employee Pension Scheme, at R6.7 million, and Ishmael Poolo, CEO of the Central Energy Fund, at R6.1 million.
Accountability and Oversight
The 123 SOEs are ultimately accountable to Parliament, but report to various ministries depending on their sector. For example, SOEs dealing with fiscal matters fall under the Minister of Finance, Enoch Godongwana, while those in the energy sector report to Gwede Mantashe, Minister of Mineral and Petroleum Resources. Determining the highest-paid CEOs required reviewing parliamentary replies from these ministers.
The figures released highlight a significant disparity in executive compensation within the public sector. Some bonuses, like the R2.8 million performance bonus received by the Central Energy Fund CEO, are tied to specific performance goals. However, the overall scale of these packages is likely to fuel public debate, especially as many SOEs struggle with financial sustainability.
Frequently Asked Questions
What is the role of the Development Bank of South Africa (DBSA)?
The DBSA was established with the mandate to promote economic growth and regional integration for sustainable development projects and programmes across the African continent.
Is the South African Revenue Service (Sars) considered a state-owned enterprise?
Although Sars’s commissioner’s salary was included in the parliamentary reply, Sars is not considered a state-owned enterprise. It is an autonomous agency that reports to the government.
What is the basis for determining executive compensation at the Government Employee Pension Scheme (GEPF)?
The GEPF benchmarks the remuneration of all employees against market best practices and does not adhere to the remuneration guidelines of the Department of Public Service and Administration.
As scrutiny of public sector finances intensifies, will these compensation levels be sustained, or will pressure mount for greater fiscal responsibility and a more equitable distribution of resources?
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