IPEC will link SOE performance to salaries — Mahama

President John Dramani Mahama has announced plans to tie the salaries and other compensation of executives and board members of State-Owned Enterprises (SOEs) to the actual performance of their institutions under the proposed Independent Public Emoluments Commission (IPEC).

The proposed commission is expected to replace the Fair Wages and Salaries Commission (FWSC) and introduce a more consistent, transparent and performance-based approach to public-sector remuneration.

Pay must reflect performance

President Mahama said compensation for executives of state-owned enterprises should no longer be determined independently of how their institutions perform.

He explained that factors such as an SOE’s financial position, productivity, achievement of agreed targets, quality of services and value created for the state should all be considered when determining executive compensation.

The President also cautioned that institutional autonomy must not be used as a justification for unexplained salary disparities or compensation arrangements that have no connection to performance.

IPEC to replace Fair Wages Commission

The proposed IPEC forms part of the government’s broader public-sector compensation reforms.

The Fair Wages and Salaries Commission has already engaged organised labour on plans to establish the new body, with the proposed legislation expected to repeal the existing FWSC Act, 2007 (Act 737).

The new framework is expected to promote greater fairness, transparency and sustainability in the determination of public-sector salaries and benefits.

SOEs record GH¢19.8bn profit

Mahama’s announcement comes as State-Owned Enterprises record a significant improvement in their overall financial performance.

According to the 2025 State Ownership Report presented at the 2026 Governing Boards and CEOs’ Conference, SOEs moved from an aggregate net loss of GH¢2.26 billion in 2024 to a net profit of GH¢19.8 billion in 2025.

The President welcomed the turnaround but stressed that the gains must translate into sustained efficiency and greater value for the Ghanaian taxpayer.

‘Public money must serve Ghanaians’

Mahama also warned SOE executives and board members against using profits belonging to the state to finance excessive personal benefits.

He said public enterprises must ensure that their improved financial performance ultimately benefits the Ghanaian people rather than being absorbed through management and board perks.

Performance-based pay takes centre stage

The proposed IPEC is therefore expected to fundamentally change how compensation is determined across Ghana’s public sector.

Earlier in March, Mahama said the new commission would develop a comprehensive National Emoluments Policy aimed at addressing salary disparities, harmonising allowances and strengthening performance-based compensation.

If implemented, the reform would make institutional performance a much more important factor in determining what executives of SOEs and other public institutions earn.

For Mahama, the message is clear: public-sector salaries must be justified by performance, productivity and the value delivered to Ghana.