An investigation into the effect of board members’ remuneration on the performance of public enterprises in Namibia

Abstract

The study focused on the effects of the board the members’ remuneration on the performance of public enterprises
in Namibia. The main objective of this study was to investigate the interrelationship between board members’
remuneration and the performance of the public enterprises in Namibia. The study used quantitative methods as
a research strategy. The research study used secondary data from the Ministry of public enterprises database and
primary data was gathered through structured questionnaires that were distributed to different public enterprises’
Chief executive officers in Namibia. The study focused on board members’ remuneration as representatives of
the board members for each of the 97 state-owned enterprises in Namibia. The researcher used Excel to do the
regression analysis. The researcher tested for correlation between a firm’s performance and annual salary and
sitting allowance and miscellaneous allowance. Public enterprises are divided into four tiers. The researcher made
use of the average revenue for each tier to represent the firm’s performance. A total of 75% of the respondents
do not agree that there is a relationship between the board members’ remuneration and the firms’ performance,
and 17% agree that there is a relationship between the board members’ remuneration and the firms’ performance.
The study recommended that the MPE/PEs should implement motivational strategies to improve board members’
performance hence improving the firm’s performance.