Poor-Performing SOEs Won’t Get Salary Increases – Mahama

President John Dramani Mahama has warned Chief Executive Officers (CEOs) and Boards of State-Owned Enterprises (SOEs) that executive compensation and continued government support will increasingly depend on measurable performance.

Speaking at the 2026 SIGA Governing Boards and CEOs Conference in Accra, President Mahama stressed that SOEs must demonstrate clear results in areas including profitability, service delivery, governance and national development. He cautioned that loss-making entities cannot continue to increase salaries, allowances or bonuses for their executives. According to the President, where state enterprises generate excess revenue, more of it should contribute to government dividends rather than executive benefits.

President Mahama said the recent improvement in SOE finances was encouraging but stressed that the focus must now be on sustaining the gains and strengthening accountability.

According to the 2025 State Ownership Report, SOEs moved from a GH¢2.26 billion net loss in 2024 to a GH¢19.8 billion net profit in 2025. Revenue also increased from about GH¢137.7 billion to GH¢176.43 billion over the same period. The President also warned that persistent underperformance could lead to corrective action, including changes to the leadership of boards and management.

By Agnes Kusi