I was in shock when I found out that Central bank governor Tito Mboweni received a 27.5% pay rise this year, above the country’s 3% to 6% inflation target. His annual pay, including fringe benefits, stood at R3.387m in 2007 and, with pension and medical contributions, the total package was R3.796m. The bank’s two deputy governors Xolile Guma and Renosi Mokate received increases of 66% and 72% respectively, taking their total pay to R2.774m and R2.839m. Some people live the good life!

Okay, it is not only these guys who are earning millions of rands every year as quite a number of top executives earn such large salaries. What is just funny to note is that the central bank gives these top guys such huge increases in their salaries when they themselves are he ones who tell us to ‘tighten our belts’ and not spend a lot of money. These are the same people who want to bring inflation down but on the one hand are having salaries increased at a much greater rate than inflation. Offcourse their salaries alone will not dent the inflation outlook of the whole country. It would be interesting to find out if all employees at the Reserve Bank got such huge salary increases.

Do you think Mboweni deserves such a salary?

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