New pay body will tie SOE bosses’ salaries to performance – Mahama

President John Dramani Mahama says the pay of chief executives and board members of Ghana’s state-owned enterprises will be tied to the performance of their institutions under a proposed overhaul of public-sector remuneration.

The Independent Public Emoluments Commission, which is expected to replace the Fair Wages and Salaries Commission, would consider an enterprise’s finances, productivity, service quality and achievement of agreed targets in determining compensation.

Mr Mahama said the proposed commission would establish a more transparent, equitable and sustainable system for setting public-sector pay, including remuneration within state-owned enterprises.

“Executive compensation cannot be determined in isolation from institutional performance,” he said.

The President was speaking at the 2026 Governing Boards and CEOs’ Conference organised by the State Interests and Governance Authority in Accra on Thursday.

He said no state-owned enterprise should operate a compensation arrangement outside the established framework because of its corporate status or ability to generate revenue.

“Institutional autonomy cannot become a licence for unjustified disparities, opaque compensation practices or remuneration that bears no relationship to performance,” he said.

The proposed changes could significantly alter how the salaries and benefits of senior officials within state institutions are determined.

However, the material provided does not indicate when the Independent Public Emoluments Commission will begin operating or what legislative and administrative processes must be completed before it replaces the existing commission.

The Fair Wages and Salaries Commission has been engaging Organised Labour about the proposed transition and the reasons for establishing the new body.

Mr Mahama directed board chairpersons, chief executives, managing directors and management teams of SOEs and other specified entities to cooperate fully with SIGA and the Fair Wages and Salaries Commission during the transition.

They would be expected to provide timely and accurate information on compensation, conditions of service and financial performance, and comply with approved remuneration arrangements.

Dr George Smith-Graham, chief executive of the Fair Wages and Salaries Commission, told the conference that his organisation and the Public Services Commission had piloted performance indicators in 15 institutions following instructions from the President last year.

He said cooperation from chief executives “is not coming from the very top”.

According to Dr Smith-Graham, an engagement involving chief executives and led by Dr Abdul-Baasit Bamba would take place on 25 September as part of the transition process.

The proposed pay reforms come as the financial position of Ghana’s state-owned enterprises shows a sharp improvement.

SIGA’s 2025 State Ownership Report said the enterprises moved from an aggregate net loss of GH¢2.26 billion in 2024 to a net profit of GH¢19.8 billion in 2025.

Mr Mahama described the turnaround as encouraging but said it must produce sustained operational efficiency and stronger underlying performance.

He warned boards and management against using profits belonging to the Ghanaian public to finance executive comforts instead of meeting their obligations to the state.

“You must not use profits that rightly belong to the Ghanaian people to finance the creature comforts of management and boards,” the President said.

He linked the remuneration reforms to demands for profitable state enterprises to pay more dividends to the government rather than allowing their earnings to be absorbed by management and board benefits.

Mr Mahama also warned board chairpersons against occupying offices within their institutions and reporting to work as though they held full-time executive positions.

Boards, he said, should provide strategic oversight rather than assume responsibility for routine operational decisions.

He added that excessive interference by boards weakened accountability, while chief executives who resisted legitimate oversight also undermined their institutions.