- The JPC CEO is receiving a 62% salary increase to R5.5 million, the largest among city entities.
- Executive pay has increased by 26% on average since 2022, exceeding inflation and public-sector guidelines.
- Two CEOs face significant pay cuts, while seven CEOs will not receive performance bonuses.
Salary increases of 62% have been proposed for the CEO of the Johannesburg Property Company (JPC) and the CEO of the Joburg Tourism Company.
The CEO of Joburg Theatres, also a city entity, is set to earn 19% more.
These are just some of the proposals for executive pay for the 2026/27 financial year budget.
The proposed budget is currently under discussion and open for comments from Johannesburg residents.
The city has 13 entities, ranging from City Power to Johannesburg Water to the JPC. Salaries for the executives of these entities have already drawn scrutiny because they are above the R3.39 million upper limit set for senior managers by the national Government Gazette.
The city argued that these entities were not legally bound by those specific limits.
On average, executive pay across the city’s senior management has increased by around 26% since 2022, well above inflation and the 3.3% public-sector guideline. For context, President Cyril Ramaphosa’s annual salary for the 2026/27 cycle is R3.5 million. The graph below shows how executive pay has increased over the last 10 years.
The CEO of the Johannesburg Property Company is set to receive a total package of R5.5 million in the 2026/27 financial year, a 62% jump from R3.4 million in the previous year and by far the largest single-year remuneration increase among the City of Johannesburg’s municipal entities. The spike is driven not just by a higher base salary, but by an outsized contributions package of R900 000. No other entity comes close to that 62% jump: eight CEOs received modest increases of under 10%.
Gemma Ritchie/The Outlier/Supplied
The salary packages for CEOs include a basic salary, contributions to medical aid and pension funds, cellphone allowances, and performance bonuses.
JPC CEO Musawakhe Makhunga currently earns R3.3 million per year. In the proposed budget, his salary will increase to R5.49 million.
This comprises a basic salary of R3.8 million, contributions of R900 058, an allowance of R384 189, and a performance bonus of R319 338.
Makhunga is supported by a CFO and seven general managers.
According to the JPC website, it “plays a vital role in driving sustainable urban transformation” and has a diverse portfolio of 64 000 properties under management, covering 39 000 hectares across seven municipal regions.
The city’s portfolio has a total value of R10.6 billion and comprises 29 006 properties. Region G (Orange Farm, Wellers Farm, Ennerdale, Lenasia, Eldorado Park, Protea South), at 18%, represents the highest value as a percentage of the total value of city-owned properties, followed by Regions B (Randburg, Rosebank, Emmarentia, Greenside, Melville, Mayfair, Northcliff, Rosebank, Parktown, Parktown North), E (Alexandra, Wynberg, Sandton, Orange Grove, Houghton), and F (Inner City, Johannesburg South), each at 16%.
Regions A (Diepsloot, Kya Sand, Dainfern, Midrand, Lanseria, Fourways) and C (Roodepoort, Constantia Kloof, Northgate, Florida, Bram Fischerville ) are the third-highest at 11%, while Region D (Doornkop, Soweto, Dobsonsville, Protea Glen) is the lowest at 8%, due to the large number of residential holdings, which have inherently lower valuations.
The entity has 13 board members, none of whom have property experience, and two board members have only matric. Board chairperson Simon Motha earned R310 000 for the 2024/25 financial year.
Other board members earned between R242 434 to R166 000 for the year. It has departments for asset management, property development, property management, outdoor advertising, facilities management, legal services and a client servicing unit.
Thandubuhle Mgudlwa, the CEO of Joburg Tourism, is also set for a massive pay increase. On a current salary of R1.6 million, Mgudlwa is set to earn R2.6 million in the next financial year. This comprises a basic salary of R1.8 million, contributions of R299 523, an allowance of R280 365, and a performance bonus of R178 099.
The city’s tourism entity said it promoted investment opportunities, business events, venues, what was on, things to do, and where to stay in the city.
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The next biggest CEO pay increase is for Joburg City Theatres CEO Xoliswa Nduneni-Ngema, who currently earns R3.2 million.
She is set to receive a 19% salary increase, comprising a basic salary of R3.39 million, contributions of R31 897, and a performance bonus of R387 481, taking her total salary to R3.8 million.
The JCT entity has 11 board members and operates the Joburg Theatre, the Roodepoort Theatre, and the Soweto Theatre. For the financial year 2023/24, the entity had a budget of R257 million and a projected revenue of R239 million.
It has 463 employees. It hosts the Joburg Ballet Company and the Joburg Philharmonic Orchestra via grants and commissions, produces productions at the three theatres, and runs a successful catering and hospitality business at the three theatres, the metro centre, CoJ departments, and the Joburg Zoo.
Executives getting pay cuts
Two notable and large pay decreases have been proposed for the CEO of City Power (34%) and the Johannesburg Roads Agency (12%).
City Power is currently without a CEO after Tshifularo Mashava stepped down at the end of March this year. Her salary was R4.8 million per year. In the new salary proposals, the CEO will earn a basic salary of R2.9 million, contributions of R162 072, an allowance of R33 727, and no performance bonus, for a total of R3.19 million.
City Power is R20 billion in the red, mostly due to unpaid accounts, the high cost of buying electricity from Eskom and theft. The entity spends at least R2 billion more than it collects in income. It also loses at least 42% of the electricity it buys from Eskom.
The other CEO taking a proposed pay cut is Johannesburg Roads Agency CEO Zweli Nyathi, who currently earns R3.5 million per year. The proposed salary for this position for the next financial year is a basic salary of R2.4 million, contributions of R65 000, an allowance of R541 000, and no performance bonus. The total salary package comes to R3.1 million.
The JRA’s main function is the planning, design, construction, operation, control, rehabilitation, and maintenance of the roads and stormwater infrastructure in Johannesburg. The main responsibilities include the construction and maintenance of bridges, culverts, traffic signals, traffic signal systems, footways, road signage, and road markings.
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The JRA has an infrastructure backlog of more than R270 billion. More than 50 of the city’s bridges are in urgent need of rehabilitation and repair, potholes across the city’s road network are omnipresent, and theft and vandalism of traffic signals remain a huge problem for the entity.
Of the city’s 13 entities, seven CEOs will not receive performance bonuses in the coming financial year, according to the proposed adjustments. These are the Johannesburg Development Agency, City Power, Metrobus, Johannesburg Roads Agency, Metropolitan Trading Company, the Johannesburg Social Housing Company, and the Joburg Market.
This story is produced by Our City News, a nonprofit newsroom that serves the people of Johannesburg.
