Media reports about the salary increase received by Armscor’s chief executive officer Sipho Thomo were inaccurate, the parastatal said on Wednesday.
It was reported in the media this week that Thomo received a salary increase of 89%, while Armscor posted a huge loss.
In a statement on his annual increase, Armscor said Thomo received a pay hike of 6,8% in 2007/08 and 13,26% in 2008/09.
The performance remuneration for 2006/07 for all employees including Thomo was only awarded and paid in 2008/09, it said.
Thomo’s performance remuneration for the two years was R236 667, based on the company’s performance results, which were validated by an independent auditor, said Armscor’s senior human resources manager Francois Potgieter.
He said Armscor had entered into a restraint of trade agreement with Thomo, which formed part of his employment contract.
”This was based on the need identified by the board in order to protect the interests of the company given the nature of our business.”
Potgieter said 60% of the total restraint amount was awarded and paid at the inception of the chief executive officer’s employment contract.
He said Armscor was ”once again” pleased with the performance of the organisation under Thomo’s leadership.
”Armscor has continued to receive an unqualified audit report by the Auditor General,” he said. — Sapa