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Image: OUTA
OUTA Report exposes weak board pay controls
R520 billion in bailouts, but little link between performance and pay
- R520 billion and counting: South Africa’s failing state-owned enterprises received more than R520 billion in government support between 2008 and 2023.
- Pay without performance: OUTA’s new report finds weak links between board remuneration and the actual performance of SOEs.
- Opaque remuneration practices: Board pay structures remain inconsistently transparent and vulnerable to political influence.
- Accountability gap: OUTA is calling for remuneration rules that tie board pay to measurable outcomes and real consequence management.
The Organisation Undoing Tax Abuse (OUTA) has released a new report calling for urgent reform of how South Africa’s State-Owned Enterprises (SOEs) structure and oversee board remuneration of non-executive board members.
The report, Enhancing Board Remuneration Governance in South African Public Institutions: A Comparative Analysis, examines pay practices at Eskom, Transnet, and South African Airways. It finds that board remuneration for non-executive board members is often weakly linked to measurable performance, inconsistently transparent, and exposed to political influence.
Between 2008 and 2023, South Africa’s SOEs received more than R520 billion in government support. Yet there is limited evidence that board and executive pay are consistently aligned with operational turnaround, financial stability, or service delivery improvements.
Taxpayers carry the cost. Boards rarely carry the consequence.
“South Africans have watched SOEs’ collapse while executives and board members continue to receive generous remuneration. That disconnect erodes trust and undermines accountability,” says Robyn Pasensie, OUTA Parliamentary Project Manager. “This is not about cutting pay for the sake of optics. It is about linking remuneration to clear, measurable outcomes. If performance declines, pay must reflect that reality.”
OUTA benchmarked South Africa’s governance practices against New Zealand, Canada, and India. While formal regulations exist in South Africa, enforcement is weaker, and insulation from political influence remains significantly less robust. In short, rules exist; the consequences often do not.
“This is not about paying less. It is about paying properly,” says Pasensie. “Board remuneration must be tied to measurable performance outcomes, clear governance standards, and transparent reporting. If an SOE collapses under a board’s watch, there must be accountability.”
The report forms part of OUTA’s broader governance reform work and underpins a continued governance partnership with the Konrad Adenauer Stiftung (KAS) for 2026. The collaboration will move beyond research and focus on practical reform.
The 2026 program will include:
• Targeted policy position papers with clear legislative proposals
• Structured engagement with Parliament and oversight bodies
The goal is simple: close governance loopholes, strengthen consequence management, and protect public funds. “Remuneration reform is not a technical exercise. It goes to the heart of fiscal stability and constitutional governance,” says Pasensie.
“If boards are rewarded despite institutional failure, we entrench decline. If we align pay with performance and accountability, we send a different message. Deliver, or step aside.”
OUTA will continue to push for governance standards that protect public funds and restore credibility in state institutions.
South Africa does not need better excuses; it needs better consequence management.
Supporting Documents
A copy of the report can be found here and read more about the project here.
Soundclip is available here.
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