2018-06-12Staff Report 2 Query: What are the remuneration procedures for parastatals’ board directors? Response: The Ministry of Public Enterprises issues a Remuneration Directive that stipulates the remuneration for boards of directors, chief executive officers and senior managers. The remuneration is gazetted and it is therefore expected of public enterprises to comply with the Remuneration Directive. The board of directors are paid an annual setting allowance and retainer fee. Retainer fee refers to a fixed annual fee paid to a board member for their services rendered on the board. Sitting allowance refers to the fees paid to a board member following his/her attendance of a board or board committee meeting. Query: Do they get paid monthly or do they get paid per meeting? Response: Boards of directors are paid setting allowance only when they attend board meetings. These meetings are assumed to be four over a period of 12 months. They also receive retainer fees to pay for any advance services that they will deliver outside the board meetings. The retainer fee payment method is at the discretion of the specific public enterprise as long as they comply with the Remuneration Directive. The retainer fee therefore can be paid monthly or quarterly. Query: How are their fees determined? Response: The 2018 Remuneration Directive has been adjusted with inflation. The norm is that remuneration surveys are conducted to determine the remuneration levels and how the proposed scales compare to the market remuneration. So far the Ministry has conducted remuneration surveys in 2009, 2013 and 2016. There is a proposed remuneration guideline that was based on the 2016 survey but that has not yet been approved by Cabinet. Query: When, if at all, can a board member or a board chairperson charge a parastatal per meeting and what would the reasonable amount be? Response: Boards of directors cannot charge public enterprises any amount except the amount that is laid down in the in the Remuneration Directive. When board members attend a board meeting, they are paid sitting allowances as per the Gazetted Remuneration Directive. Query: Can a board chairperson charge a parastatal for meeting with their line minister? Response: Boards of directors are paid retainer fees for ad-hoc and planned engagements outside the board meetings and these include meeting with the line minister. • Mr Johnathan Swartz, Chief Public Relations Officer, Ministry of Public Enterprises, E-mail address: Johnathan.Swartz@mpe.gov.na 2018-06-12Staff Report 2
