MIFF Chairman calls for an early review of the salary structure on the boards of directors of state-owned enterprises

Professor Douglas Boateng, Chairman of the Board of the IIF

At a recent board summit bringing together more than 1,000 of the country’s leading executives, politicians and leaders, Professor Douglas Boateng, Chairman of the Mining Income Investment Fund (MIIF), spoke on the current state of remuneration for board members of public companies. enterprises (SOEs), arguing that it is unsustainable and that immediate reform is critical.

Speaking on the sidelines of the summit, Professor Boateng highlighted the dangers of inadequate remuneration for board members, warning that it threatens the future of these vital institutions.

“We can no longer pretend that everything is fine. How can we expect board members who control organizations with assets in excess of $400 million to fully perform their duties if they are paid less than $380 per meeting or $1,520 per year? Some earn a paltry $114 per quarter or less than $500 per year.

“This level of compensation is too low for the responsibilities involved,” he said.

Professor Boateng emphasized that board members face increasing risks in today’s corporate environment.

“These days, you can not only have your hard-earned reputation destroyed, but you can also end up in prison if something goes wrong. “Board members must take their responsibilities seriously and be properly remunerated for doing so,” he warned.

He also stressed the need for board members to add value through a deep understanding of the companies and industries they oversee.

“To protect shareholder interests and enhance value, directors need to constantly seek information, ask tough questions and stay informed.

“It takes time, effort and fair compensation,” he said.

While acknowledging the honor of public service, Professor Boateng insisted that fairness in remuneration was important.

“Serving as a non-executive director in SOEs is a national responsibility, but the significant responsibilities involved require fair compensation.

“This call is not for salary increases for current directors and chairs, but for future leaders to be properly motivated to meet the modern demands of boardroom governance,” he said.

Professor Boateng’s remarks have reignited debate over the future of state-owned enterprise management, making it clear that without reform, these enterprises will continue to struggle to attract and retain the talent they need to thrive.

“Outdated practices must change. State-owned enterprises are critical to national development and the achievement of global goals such as the UN SDGs and Africa Agenda 2063.

“Board compensation should reflect the importance of these roles, not only to attract talent, but also to protect the integrity and effectiveness of these institutions,” he added.

Professor Boateng also called for a shift from politically motivated appointments to merit-based leadership.

“Serving on the board of directors of state-owned enterprises requires specialized knowledge, strategic thinking and accountability. Compensation must reflect the demands of the role and if we do not take action we risk jeopardizing the future of these institutions,” he warned.

Professor Boateng called for rapid reforms, saying: “The time for change has come. Governments must review how SOE boards are remunerated, not only for the sake of fairness, but also to ensure that our SOEs are led by the best talent capable of meeting today’s complex global challenges.”

His remarks sparked renewed efforts at governance reform, generating strong support for a forward-thinking approach to board appointments and compensation structures.

AM/MA

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