The Unspoken Crisis: MIIF chair urges immediate overhaul of boardroom compensation

At the recent Boardroom Summit, where over 1000 of the nation’s top CEOs, policymakers, and executives gathered, Professor Douglas Boateng, Chair of the Minerals Income Investment Fund (MIIF), delivered a powerful message: the current state of board compensation in state-owned enterprises (SOEs) is unsustainable, and immediate reform is critical.

Speaking on the sidelines of the 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 organizations with assets exceeding $400 million, to fully commit to their duties when they’re paid less than $380 per meeting or 1520 per annum? Some receive a paltry $114 per quarter or $ than $500 annually. This level of compensation is far too low for the responsibilities involved.”

Professor Boateng emphasized 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 recognizing 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 incentivized to meet modern board room governance demands.”

The summit has become a pivotal forum for governance discussions across Africa. 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“Outdated practices must change. State-owned enterprises 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 specialized expertise, strategic thinking, and accountability. Compensation should reflect the demands of the role. If we fail to act, we risk jeopardizing the future of these institutions,” he warned.

In conclusion, Professor Boateng urged swift reform: “The time for change is now. Governments must reassess how SOE boards are compensated, not just for fairness, but to ensure that our state-owned enterprises are led by the best talent equipped to navigate today’s complex global challenges.”

His remarks have sparked a renewed drive for governance reform, with strong support for a forward-thinking approach to board appointments and compensation structures.