75% Propose State Own Enterprises (SOEs) Executive Pay Cut - Corporate Governance Nonsense

In the Complex Realm of State Own Enterprises (SOEs), EXECUTIVE PAY/COMPENSATION of Managers Remains a Very Difficult Issue to the TRUSTEES (Government) and Shareholders.

Shareholder Structure of SOEs Remains Bureaucratic in Nature, Unlike that of Private Own Companies. The Real Shareholders are the Citizenry; Who Delegate their Government's to Own their Interest (Shares) in TRUST for them. This Phenomenon Equally Also Rise to AGENCY DILEMMA/PROBLEM with a 'TRIPARTITE EFFECT'. AGENCY DILEMMA (AD) is a Conflict Arising when People (Agents) Entrusted to Look After the Interests of others (Principals) Use the Authority or Power for their Own Benefit Instead. AD is a More Complex Phenomenon in the Case of SOEs.

Some Asian Jurisdictions Like China, Singapore, Malaysia, Vietnam and South Korea have Tried the AD By Instituting Such Measures as; Tough Screening Processes, Incentives for Good Behaviour and Punishments for Bad Behaviour, Watchdog Bodies, and Strong 'Sunshine Laws' Remedy it Completely Because, the Costs of Doing So Sooner or Later Outweighs, the worth of the Results.

While Government Agents (Presidency, Sector Minister & Chief Director) are Striving for their Reward from Major Contracts and Allowances, the Executive Board Enjoys Exorbitant Allowances and Management Seeks Huge Compensation Packages. This Tripartite Dilemma is Mostly Compounded By Massive Bribes and Extortions from Suppliers, Service Providers and Contractors, All Under the Clothe of COMPENSATION.

NOW ON THE "DOWNWARDS RATIONALISATION OF EXECUTIVE PAY"

From the Aforementioned, it is Clear that Any Attempt at Reducing 'Executive Pay', Could Be a Dangerous Establishment of an Incubator to Breed a Gargantuan Expensive Corruption and Embezzlement; Through Creative Accounting, Which Could Further Worsen the Financial Position of the SOEs.

If the Government Consider this as an Irreversible Intent, then it Must Proceed with Cautious Discretion. The Remuneration of an EXECUTIVE ELECTED PRESIDENT (EEP) Cannot Be Use as a Parameter in Setting a Benchmark for EXECUTIVE (BOARD) and MANAGEMENT COMPENSATION of SOEs. Any Attempt By Government to Vary Compensation of Boards and Management of SOEs is at Best Dictatorial, Unequitable and a Gross Violation of Industry’s Standard.

It Must Be Noted that an EEP's Pay is Indemnified and Coterminous to the Mortality Rate of the President and Engraved in Article 71 (1992 Constitution). This Comes with Other Auxiliary Benefits as Fleet of Vehicles, Security, Domestic Wardings, Driver, 3 Staff, Medical Care and Fully Sponsored Overseas Travel Twice a Year (Both in Active Service and on Retirement). Aside, Upon Death the Cost of a President's Burial and Funeral is Born the State. Literature on Political Graft, Usually Attributes the Lofty EEP's Compensation Package as a Control System that Could Demotivate Executive Appointees from Corrupt Acts.

Same Cannot Be Said of Members of Executive Boards and Management Staff of SOEs. Hence, the Supposedly Huge Salaries and Allowances to Sufficiently Motivate them and Enable them Invest for their Future. 'Downwards Variation of their Pay" Could Increase 'Agency Cost' (ED) and Worsen the Gearing Position of Our Non-Performing SOEs.

In Corporate Governance, Executive Pay and Compensation is Usually Determine By Industry Dynamics and Precedence. "Iron Hands" and Legislative Interference Jeopardise the 'Going Concern' of a Company (SOE). A Sector; Whose Annual Average Losses is About GhS600,000 000.00, will Either Deteriorate Or Collapse When its Managers are not Adequately Compensated.

Government Should Endeavour to Ignite an Intellectual Discourse By Publishing Industries Average Executive Board & Management Pay (Compensation) Globally, Continental and Sub-Continental; Segregating Same into Wholly SOE and Private Sectors. This Could Bring Clarity and Consensus on Any Review.

TRULY, WHEN THIS IS DONE, SOME BOARDS AND MANAGEMENT HEADS MAY EVEN DESERVE MORE AND OF COURSE, OTHERS MAY NOT EVEN DESERVE TO HAVE THEIR JOBS!!!‎