Making the Improbable, Possible: Reviving the Competitiveness of State-Owned Businesses
Service Category: Capacity & Training
Client Type: A National Regulator of State-Owned Commercial Entities
Service: Our client sought to improve the business competitiveness of government-owned commercial entities. It required: · a national and international survey of remuneration practices; · development of a robust remuneration scheme and · the preparation of a world-class implementation manual for its use in governing the new remuneration policy.
What we did: We: ·
- Researched and proposed a first-rate remuneration policy for all state-owned businesses. ·
- Developed a related governance framework grounded in international standards and national legal obligations. ·
- Ensured credibility of implementation by proposing the rights and obligations of the businesses, on the one part, and the regulator, on the other part. ·
- Proposed robust obligations of financial sustainability and non-financial indicators to be satisfied by the businesses. ·
- Specified service obligations to be met by the regulator and a credible appeals mechanism to be used by businesses in the event of default. ·
- Proposed industry sector-based evaluation guidance to be utilised by the regulator in its oversight of the businesses.
Foresight Created: We showed: ·
- The decision-making value to our clients of our world-class and transparent remuneration research methods. ·
- Our confidence in providing full scrutiny of our data collection and analytical processes. ·
- Our focus on supporting regulatory economic and governance efficiency, minimising the burden of oversight whilst optimising its impact.
We cautioned against introducing political choices in regulation that may have adverse effects on the competitiveness of the regulated businesses and the efficiency of the regulator.
