[ 2012-07-03 ]

Mgt Consultant advocates monthly remuneration for Co. Directors
Management Consultant, Charles Mensah is
advocating a paradigm shift to monthly
remuneration of Directors of Public. While some
directors receive monthly allowances, others are
paid per diem or per daily meeting.

Some directors are however said to be abusing
especially the per diem compensation package. Mr.
Mensah is therefore a arguing for the per diem
compensation to be scrapped.

“Because they call it sitting allowance, each time
they sit, they get paid and this is being abused.
All they have to do is to increase the frequency
of sitting and therefore if you take some
companies profit and loss accounts, you’ll notice
that the sitting allowance takes a lot of it”

He further argues the per diem is unduly taking a
negative toll on the implementation of policies by
management teams.

“They are supposed to give policy direction which
is a periodic activity. So sometimes it doesn’t
allow the managers to measure the policy direction
that they have given them because they have to
come back after 3 or so days to report. So the
ideal thing to do is to rather reduce the sittings
and strengthen the management so that they can
report to the board on monthly basis” he noted.

Source - Joy News

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