Success and Limitations of Compensation packages on the Performance of Executives in Namibia's Commercial Public Enterprises

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 11

Year of Publication : 2020

Authors : Mrs Helena Megameno, N. Ngalandji-Hakweenda

10.14445/23939125/IJEMS-V7I11P113

How to Cite?

Mrs Helena Megameno, N. Ngalandji-Hakweenda, "Success and Limitations of Compensation packages on the Performance of Executives in Namibia's Commercial Public Enterprises," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 11, pp. 86-90, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I11P113

Abstract:

Public enterprises' performance has been a burning topic in the country, with several public enterprises requesting government bailouts. State-owned enterprises (SOEs) are also not as efficient as a private company would operate for the sake of profit, and as a result, SOEs, in many cases, fail on all sides. Meanwhile, it is noted that the higher echelons' wages in SOEs are out of proportion with their delivery. This paper investigates the successes and limitations of executives' compensation packages in enhancing the performance of Commercial Public Enterprises in Namibia. The study's sample size was 44 and included the CEO/MD and Board Chairperson of each of the twenty-two (22) Public Enterprises listed with the Ministry of Public Enterprises. The study employed a mixed research approach for data collection using a questionnaire as a tool. The study finds 56% successes with executives' compensation packages in the CPEs, while 72% indicated "Yes" to challenges with executives' compensation packages that hinder performances. It is recommended that the Government (shareholder) find the best fit model of executive compensation packages to induce a positive performance level. Together with CPEs, the Government should invest in the 56% of respondents who indicated successes with the compensation package of executives in the CPEs. Also, on methods used to determine the compensation package for both internal and external arrangement, this relationship should be strengthened by establishing an independent high-level committee on CPE compensation. This would consequently reduce the 72% indication on Yes to challenges with compensation packages of executives that hinder performances

Keywords:

Commercial Public Enterprises, executive compensation, performance

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