Professor Douglas Boateng
Chair of the Minerals Income Investment Fund (MIIF), Professor Douglas Boateng, has called for the immediate overhaul of boardroom compensation indicating that the current state of board compensation in state-owned enterprises (SOEs) is unsustainable.
Speaking on the sidelines of the recent Boardroom Summit, Professor Boateng highlighted the dangers of inadequate boardroom compensation, warning that it threatens the future of these vital institutions.
“We can no longer pretend everything is fine,” he stated. “How can we expect board members, overseeing organisations with assets exceeding $400 million, to fully commit to their duties when they are paid less than $380 per meeting or $1520 per annum? This level of compensation is far too low for the responsibilities involved.”
Professor Boateng emphasised that board members face increasingly serious risks in today’s corporate landscape. “In these days, not only can one’s hard-earned reputation be destroyed, but you can go to jail if things go seriously wrong. Board members must take their roles seriously, and for that, they must be properly compensated,” he cautioned.
He also stressed the need for board members to add value through a deep understanding of the companies and industries they oversee. “Protecting shareholder interests and driving value requires directors to constantly seek information, ask tough questions, and stay informed. This demands time, effort, and fair compensation,” he said.
While recognising the honor of public service, Professor Boateng insisted that fairness in remuneration is essential.
“Serving as a non-executive director in SOEs is a national duty, but the serious responsibilities involved require fair compensation. This call is not for higher pay for current directors and chairpersons, but to ensure that future leaders are properly incentivised to meet modern board room governance demands,” he said
Professor Boateng’s remarks reignited debate on the future of SOE leadership, making clear that without reform, these enterprises will continue to struggle in attracting and retaining the talent they need to thrive.
“Outdated practices must change. SOEs are critical to national development and meeting global objectives like the UN SDGs and Africa’s Agenda 2063. Board compensation must reflect the importance of these roles, not just to attract talent but to safeguard the integrity and effectiveness of these institutions,” he added.
Professor Boateng called for a shift from politically motivated appointments toward merit-based leadership.
“SOE board roles require specialised expertise, strategic thinking, and accountability. Compensation should reflect the demands of the role. If we fail to act, we risk jeopardising the future of these institutions,” he warned.
Professor Boateng urged swift reform saying, “The time for change is now. Governments must reassess how SOE boards are compensated, not just for fairness, but to ensure that our SOEs are led by the best talent equipped to navigate today’s complex global challenges.”