Reserve Bank Governor Tito Mboweni was awarded a 28% pay increase in the past financial year, more than four times the upper end of the inflation target, a newswire service noted on Thursday.
The Bank annual report shows that Mboweni’s salary, including retirement and medical contributions rose to R3,8m from R2,98m in the previous year.
The pay increase jars with the Bank’s quest to keep the rate of inflation between 3% and 6%.
Deputy governors Xolile Guma and Renosi Mokate received remuneration increases of 66% and 73% respectively. Guma’s salary increased from R1,67m to R2,77m; Mokate’s rose from R1,64m to R2,84m.
The annual report did not offer any explanation for the huge increase in salaries.
The Bank’s remuneration committee comprises: Raymond Parsons, Stephen Goodson, Noluthando Orleyn and Thandeka Mgoduso.
Sizeable pay rises for public figures such as Mboweni will inspire other public and private employees to demand similar increases. This will have a negative effect on inflation because it will increase the cost of doing business and hence of goods and services.
In 2005, Moneyweb noted that Mboweni had received an increase of 4,4%. This was when workers at Pick n Pay turned up their noses to an increase that was double the inflation rate at the time.
Mboweni’s pay increase is unlikely to please those who have felt the brunt of a string of interest rate hikes. The high-living governor already has a reputation for excessive ego, after attempting to censor what pictures of him are released into the public domain.