/ 5 September 2008

Huge pay hike for Mboweni

Reserve Bank Governor Tito Mboweni has received a pay increase of more than 25% in the past financial year, the South African Broadcasting Corporation reported.

The Reserve Bank’s annual report released on Thursday shows that Mboweni’s salary, including retirement and medical contributions, rose to R3,796-million from R2,9-million in the previous year.

Deputy governor Xolile Guma received a 66% increase, which took his salary to R2,77-million last year. Renosi Mokate, the bank’s other deputy, received a 73% hike, taking her salary to R2,8-million.

The average salary increase in pay settlements in South Africa for the past financial year was about 7%.

Business Day quoted Thandi Orleyn, chairperson of the Bank’s remuneration committee, as saying that the pay hikes were agreed after a study showed its executive pay packages were not in line with those at similar organisations.

This week, Mboweni announced that he would serve another term as head of the central bank if asked to do so. His term of office ends next year. – Sapa